One of the conclusions of A.C.Pigou was that
A)a system of mandatory controls is the only effective means to control pollution.
B)a system of charges can be an effective means to control pollution.
C)pollution will wither away if a socialist system is in place.
D)pollution cannot be adequately addressed in a price system.

Question

Quizplus · Accepted Answer

A.C. Pigou's conclusion was that a system of charges, also known as Pigouvian taxes, can be an effective means to control pollution. These taxes would increase the cost of polluting activities, thereby reducing the amount of pollution produced by firms and individuals. This approach is based on the idea that polluters should bear the cost of the negative externalities they create, rather than passing them on to society as a whole.

One of the Conclusions of A.C.Pigou Was That