Question 8 A state government is attempting to reduce pollution. It is choosing between taxes on the pollution or regulations requiring all polluters to reduce pollution by 20%. Which of the following best describes the outcomes? aBoth methods can result in the same reduction of pollution, but the taxes will achieve that goal by using fewer resources to reduce pollutionbBoth methods can result in the same reduction of pollution, but the taxes will achieve that goal by raising the costs of producing and thus raise prices. Regulation will not.cThe taxes will allow more pollution, but both methods will use the same amount of resources.dThe taxes will force less pollution, but both methods will use the same amount of resources.

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Answered: state government is attempting to…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter18: Public Economy

Section: Chapter Questions

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Question 8

A state government is attempting to reduce pollution. It is choosing between taxes on the pollution or regulations requiring all polluters to reduce pollution by 20%. Which of the following best describes the outcomes?

Both methods can result in the same reduction of pollution, but the taxes will achieve that goal by using fewer resources to reduce pollution

Both methods can result in the same reduction of pollution, but the taxes will achieve that goal by raising the costs of producing and thus raise prices. Regulation will not.

The taxes will allow more pollution, but both methods will use the same amount of resources.

The taxes will force less pollution, but both methods will use the same amount of resources.

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