If the government were to limit the release of air pollution produced by a glue factory to 75 parts per million, the policy would be considered aGroup of answer choicesmarket-based policy.command-and-control policy.corrective tax.subsidy.
Question
If the government were to limit the release of air pollution produced by a glue factory to 75 parts per million, the policy would be considered aGroup of answer choicesmarket-based policy.command-and-control policy.corrective tax.subsidy.
Solution
The policy would be considered a command-and-control policy.
Here's why:
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A command-and-control policy is a type of regulation where the government sets specific limits or standards and enforces them. In this case, the government is setting a specific limit on the amount of air pollution (75 parts per million) that the glue factory can release.
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This is different from a market-based policy, which would involve the government creating economic incentives for the factory to reduce its pollution. An example of a market-based policy would be a pollution tax or a cap-and-trade system.
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A corrective tax is a type of market-based policy where the government imposes a tax on activities that have negative externalities (like pollution). This is not the case here because the government is not imposing a tax, but rather setting a limit.
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A subsidy is a payment made by the government to support a particular industry or business. This is not the case here because the government is not providing any financial support to the glue factory.
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