alleryStart learning →Laws specifying allowable pollution quantities and required control technologies fall under:
ABetter property rights
BVoluntary firm pledges
CCommand-and-control regulation
DMarketable permit trading
Answer & Solution
Correct answer: C. Command-and-control regulation
1. Regulation can dictate outcomes directly rather than pricing them.
2. Some laws specify allowable quantities of pollution.
3. They may also detail which pollution-control technologies companies must use.
4. These types of laws fall under the category of command-and-control regulation.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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