Question

5. A government wants to enact a policy that will lead to a reduction in pollution emissions. One policy entails establishing an emissions standard; another policy encails implementing an emissions tax. Which of the following statements is true? I. An emissions standard and an emissions tax are equally efficient methods for re- ducing pollution emissions. equal for all sources of pollution. equal for all sources of pollution. IL. An emissions standard ensures that the marginal social benefit of pollution is . An emissions tax does not ensure that the marginal social benefit of A. StatementI B. Statements I and II C. Statements I and III D. Statements I, П, and 11 E. None of the above statements is true.

Answer 1

Option E

Emissions standards does not consider the marginal benefit of pollution when it is enforced

Emission taxes ensures that the marginal benefit of pollution is equal for all sources of pollution