If the government were to limit the release of air pollution produced by a steel mill to 10 000 units, this policy would be considered a:
A)regulation
B)Pigovian tax
C)subsidy
D)market-based policy

Question

Quizplus · Accepted Answer

A regulation is a direct government intervention in setting and enforcing standards or rules for the behavior of individuals and firms. In this case, the government is setting a limit on the amount of air pollution that the steel mill is allowed to emit. This is a form of command and control regulation.

If the Government Were to Limit the Release of Air