11. Achieving lower pollution Suppose a politician is critical of a government pollution permit policy that they say allows companies to buy and sell the right to pollute. They argue that the public's right to breathe clean air and the health of the planet require real regulation instead of this type of government policy. Which of the following arguments best describes why the majority of economists would disagree with their statement? Tradable pollution permits in a free market is typically more efficient than government regulation. A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would. Clean air is a fundamental right, and government regulation will allow too much pollution. The environment is so important that it should be protected as much as possible, regardless of the cost.
11. Achieving lower pollution Suppose a politician is critical of a government pollution permit policy that they say allows companies to buy and sell the right to pollute. They argue that the public's right to breathe clean air and the health of the planet require real regulation instead of this type of government policy. Which of the following arguments best describes why the majority of economists would disagree with their statement? Tradable pollution permits in a free market is typically more efficient than government regulation. A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would. Clean air is a fundamental right, and government regulation will allow too much pollution. The environment is so important that it should be protected as much as possible, regardless of the cost.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 5PA
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