Which of the following is not a solution to the problem of negative externalities due to pollution?
A) Create private property rights.
B) Levy pollution taxes.
C) Create obligatory controls.
D) Reward the production of the products through subsidies.

Question

Quizplus · Accepted Answer

Rewarding the production of the products through subsidies will only exacerbate the problem by incentivizing more production and hence more pollution, instead of curbing it. The other options - creating private property rights, levying pollution taxes, and creating obligatory controls - are effective ways to address negative externalities due to pollution.

Which of the Following Is Not a Solution to the Problem