The use of tax penalties to control pollution represents a
A)price-based market approach to the pollution problem.
B)nonmarket approach to the pollution problem.
C)major source of current federal revenues.
D)pollution-rights solution to the pollution problem.

Question

Quizplus · Accepted Answer

The use of tax penalties to control pollution is a price-based market approach because it involves imposing a cost on polluters for their negative externality. It uses the market mechanism of pricing to incentivize polluters to reduce their pollution levels.

The Use of Tax Penalties to Control Pollution Represents a