Pollution taxes are more efficient in cleaning up the environment than direct controls.What is not an advantage of direct controls?
A)They are useful standby mechanisms.
B)They are useful if it is decided to prohibit the substance altogether.
C)They are useful where dependable metering devices are not available or prohibitively costly to install.
D)They are most useful in centrally planned economies.

Question

Quizplus · Accepted Answer

Direct controls are most useful in centrally planned economies because the government has more control over what businesses do and can enforce regulations more easily. However, in market economies, pollution taxes are often more efficient because they provide an economic incentive for businesses to reduce their pollution levels. Choices A, B, and C are all advantages of direct controls.

Pollution Taxes Are More Efficient in Cleaning Up the Environment