Creating market-like _______ to encourage reductions in pollution, but allowing _______ to decide how much to pollute, is the _______ approach.

Question

Quizplus · Accepted Answer

The question refers to creating incentives to encourage reductions in pollution, and the approach that allows individual decision-makers to decide how much to pollute is using market-like mechanisms such as cap-and-trade or pollution taxes. Therefore, incentives and individual decision-makers are the most appropriate options, making choice A the best answer. Choice B mentions government as the decision-maker, which is not in line with market-based solutions, while choice C mentions controls and moral suasion, which are not market-based. Choice D mentions barriers, which is not a solution for encouraging reductions in pollution.

Creating Market-Like _______ to Encourage Reductions in Pollution, but Allowing