If the government were to limit the release of air-pollution produced by a steel mill to 50 parts per million, the policy would be considered a:
A) corrective tax.
B) subsidy.
C) regulation.
D) market-based policy.

Question

Quizplus · Accepted Answer

A regulation is a government policy that sets specific limits or standards for pollution, emissions, or other activities that can harm the environment or public health. In this case, the government is setting a maximum allowable limit on the release of air pollution from a steel mill. A corrective tax is a type of market-based policy that imposes a tax on activities that produce pollution, and a subsidy is a government payment or support for an activity or industry. Therefore, neither of these options accurately describes this policy.

If the Government Were to Limit the Release of Air-Pollution