The cap and trade method used by government to ensure that pollution is minimized in the most cost effective way is an example of:

CA Foundation · Business Economics · PYQS · January 2025
The cap and trade method used by government to ensure that pollution is minimized in the most cost effective way is an example of:
(A) A. Government intervention to correct externalities
(B) B. Government intervention in the case of merit goods
(C) C. Government intervention in the case of demerit goods
(D) D. Government intervention for correcting market failure

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Government intervention to correct externalities

Topics: Public Finance

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic