Economists Typically Suggest Three Choices That Allow a Polluter to Decide

Multiple Choice

Economists typically suggest three choices that allow a polluter to decide how to absorb most, or perhaps all, of the social costs of its actions, which are

A) continuing to overproduce the good, lowering the price of the good, or cutting output.
B) reducing the pollution-causing activity, changing production techniques, or paying a price to pollute.
C) installing pollution abatement equipment, paying to pollute, or just ignoring the issue.
D) paying a pollution tax, continuing to use existing production techniques, or continuing the polluting behavior without regard to the social implications.