Multiple Choice
The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation.Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities.This is an example of dealing with externalities by
A) voluntary compliance.
B) direct controls.
C) taxes.
D) the market mechanism.
Correct Answer:
Verified
Correct Answer:
Verified
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