The government imposing a tax on the emissions of firms to reduce the level of air or water pollution in an area is an example of which of the following actions to promote efficiency and equity?

Question

Quizplus · Accepted Answer

Correcting for externalities is the action taken by the government to reduce the level of air or water pollution in an area by imposing a tax on the emissions of firms.

The Government Imposing a Tax on the Emissions of Firms