Command-and-control policies usually
A) reduce the production of a polluting good more than do pollution taxes.
B) reduce the production of a polluting good less than do pollution taxes.
C) increase price less than do pollution taxes.
D) decrease the quantity demanded by less than do pollution taxes.

Question

Quizplus · Accepted Answer

Command-and-control policies require firms to use specific technologies or processes to reduce pollution, which can be costly and inefficient. This can result in smaller reductions in pollution compared to the incentives created by pollution taxes, which provide a financial motivation for firms to find the most cost-effective solutions to reduce pollution. Therefore, choice B is the correct answer as command-and-control policies reduce the production of a polluting good less than do pollution taxes.

Command-And-Control Policies Usually