- Your roommate going on a diet. Government regulations that set an environmental goal and dictate how the goal will be achieved are called: - Command-and-control-regulations. People are unlikely to choose to pay extra for a low-emissions automobile, because they: - Are better off "free-riding" on others' attempts to reduce emissions. Incentive-based regulations: -A ll of the other choices are true. If government taxes a firm which pollutes this will: - Decrease the supply of the good produced. According to most economists, reducing automobile emissions to zero would be: - Inefficient. Negative externalities: - Impose most of their costs on individuals other than consumers of the polluting product. Markets for pollution rights: - enable those who value them most to pollute. The environmental approach found in the Clean Air Act of 1990 is: - marketable pollution permits. Which of the following statements is true ? - Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.
As a general rule, if pollution costs are external, firms will produce: - too much of a polluting good.