are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?

6. Classify the following pollution-control policies as command-and-control or market incentive based.

a. A state emissions tax on the quantity of carbon emitted by each firm.

b. The federal government requires domestic auto companies to improve car emissions by 2020.

c. The EPA sets national standards for water quality.

d. A city sells permits to firms that allow them to emit a specified quantity of pollution.

e. The federal government pays fishermen to preserve salmon.

7. An emissions tax on a quantity of emissions from a firm is not a command-and-control approach to

reducing pollution. Why?
300 12 • Self-Check Questions

8. Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great

deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 shows
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