Three methods the government can use to cope with the external cost from pollution are
A) pollution taxes, subsidies, and outright bans.
B) pollution taxes, regulations, and subsidies.
C) marketable permits, pollution subsidies, and pollution taxes.
D) pollution charges, marketable permits, and pollution limits.
E) vouchers, pollution subsidies, and pollution taxes.

Question

Quizplus · Accepted Answer

The government can use pollution charges (taxes), marketable permits (cap-and-trade systems), and pollution limits (regulations) to address external costs from pollution.

Three Methods the Government Can Use to Cope with the External