A local pub that allowed patrons to smoke was recently forced to close its doors because it did not comply with local clean air standards.What example is provided by this decision
A)direct regulation of an externality
B)corrective taxes
C)a Coase theorem solution to an externality
D)unjustified discrimination against smokers

Question

Quizplus · Accepted Answer

This decision reflects the direct regulation of an externality, as the local clean air standards were enforced to mitigate the negative effects of secondhand smoke on public health.

A Local Pub That Allowed Patrons to Smoke Was Recently