Taxes are a more effective method of controlling pollution than environmental standards because:
A) standards allow greater flexibility.
B) standards require less information.
C) standards never require the efficient level of output.
D) taxes encourage reducing pollution at the lowest possible cost.

Question

Quizplus · Accepted Answer

Taxes provide economic incentives for polluters to reduce emissions at the lowest cost, encouraging innovation and efficiency, whereas standards are rigid and do not adapt to individual circumstances.

Taxes Are a More Effective Method of Controlling Pollution Than