An Advantage Offered by Pollution Taxes That Is NOT Offered

Multiple Choice

An advantage offered by pollution taxes that is NOT offered by command-and-control policies is that

A) under pollution taxes pollution is usually reduced to zero.
B) a pollution tax decreases the price of the polluting good.
C) under pollution taxes, the government receives tax revenues that may be used to clean up pollution.
D) pollution taxes decrease the demand for the good generating the pollution.