One way the government can reduce the financial burden to firms that install pollution control equipment is to use
A) tax credits.
B) effluent fees.
C) direct regulation.
D) price controls.
E) quotas.

Question

Quizplus · Accepted Answer

Tax credits are a form of government subsidy that reduces the cost of pollution control equipment for firms. By giving a tax credit, firms are incentivized to invest in eco-friendly equipment, which helps to reduce overall pollution levels. This approach also ensures that the financial burden is not entirely on the firms and that the government plays an active role in promoting environmental sustainability.

One Way the Government Can Reduce the Financial Burden to Firms