Question

why do most economists prefer market - based policies to the command - and - control approach to pollution?
a. market - based policies eliminate pollution at lower cost than the command - and - control approach.
b. market - based policies eliminate more pollution than the command - and - control approach.
c. market - based policies generate more government revenue than the command - and - control approach.
d. market - based policies force those who pollute to eliminate equal amounts of pollution unlike the command - and - control approach.
e. both a and b.

Explanation:

Market - based policies are preferred by most economists for pollution control as they can achieve pollution elimination at a lower cost compared to command - and - control. Command - and - control is more rigid and may not be cost - effective. While market - based policies can also potentially generate government revenue through taxes or emissions trading, the main reason is cost - effectiveness. Also, market - based policies do not necessarily eliminate more pollution or force equal pollution elimination as stated in other options.

Answer:

A. Market - based policies eliminate pollution at lower cost than the command - and - control approach.