Certain schools of economic thought suggest that a _______ would reduce pollution in a _______, when compared to command-and-control regulation.
A) marketable permit; less cost-effective way
B) pollution tax; flexible, more cost-effective way
C) marketable permit; less flexible manner
D) pollution tax; less cost effective, but flexible way

Question

Certain schools of economic thought suggest that a _______  would reduce pollution in a _______, when compared to command-and-control regulation.
A) marketable permit; less cost-effective way
B) pollution tax; flexible, more cost-effective way
C) marketable permit; less flexible manner
D) pollution tax; less cost effective, but flexible way

Quizplus · Accepted Answer

A pollution tax is considered by many economists to be a flexible and more cost-effective way to reduce pollution compared to command-and-control regulation. This is because it allows firms the flexibility to reduce pollution in the most cost-effective manner for them, rather than adhering to specific, potentially less efficient, regulations.

Certain Schools of Economic Thought Suggest That a _______