Home › AP Microeconomics › Economics › Negative Externalities › A pollution charge differs from command-and-cont…
A pollution charge differs from command-and-control regulation because the charge:
ABans the pollution
BNames the technology
CSets the exact output
DPrices the pollution
Answer & Solution
Correct answer: D. Prices the pollution
1. The two families of policy work through different mechanisms.
2. Command-and-control laws specify allowable quantities of pollution.
3. They may also detail which pollution-control technologies companies must use.
4. A pollution charge is instead a tax imposed on the quantity of pollution a firm emits.
5. So the charge prices the pollution rather than dictating the method.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
Related questions
Comparing the private and social supply curves, the social curve for a polluting firm liesExternalities count as market failure because markets consider social costs that are:Permits are described as marketable, which means that firms can:Which three categories are named as the market-oriented approaches to pollution control?Laws specifying allowable pollution quantities and required control technologies fall undeTaking external pollution costs into account results in a quantity of production that is:Taking external pollution costs into account results in a price that is:The supply curve that accounts for the additional external costs is labelled: