Suppose a chemical plant in Warzonka produces a by-product that is extremely toxic. The by-product is fatal to plant and animal life upon direct contact, and low-level contamination of the by-product in the environment is linked to cancer. Which of the following would be the best choice for public policy in this case?

a. Command-and-control regulation
b. A corrective tax
c. A property tax
d. A tradable permit system

a

Economics

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On any given day, a salesman can earn $0 with a 30% probability, $100 with a 20% probability, or $300 with a 50% probability. His expected earnings equal

A) $0. B) $100. C) $150. D) $170.

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The legally established value of a country's monetary unit in terms of another under the Bretton Woods system was called the

A) exchange rate. B) dirty float. C) special draw. D) par value.

Economics