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Some Economists Believe That a Command-And-Control Policy to Reduce Emissions

Question 152

Multiple Choice

Some economists believe that a command-and-control policy to reduce emissions is inequitable. One reason for their conclusion is that


A) such a policy is equivalent to economic totalitarianism.
B) historically such policies have driven firms out of business.
C) because of the bureaucracy involved, such policies are expensive to implement.
D) firms with different marginal costs of abatement might not be assigned a pollution level that sets marginal benefit equal to marginal cost.

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