Multiple Choice
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7. Externalities
Public Solutions to Externalities
Multiple Choice
Which of the following best describes one way the Clean Air Act helped reduce air pollution?
A
It established emission standards for factories and vehicles.
B
It required all businesses to relocate away from urban areas.
C
It eliminated all taxes on gasoline to encourage consumption.
D
It subsidized the production of coal to lower energy costs.
Verified step by step guidance1
Understand the purpose of the Clean Air Act, which is a federal law aimed at controlling air pollution on a national level.
Recognize that one of the main tools used by the Clean Air Act is setting limits or standards on the amount of pollutants that factories and vehicles can emit into the air.
Analyze the options given: relocating businesses, eliminating gasoline taxes, and subsidizing coal production do not directly reduce emissions or improve air quality.
Focus on the option that mentions establishing emission standards, as this directly targets the sources of pollution by limiting harmful emissions.
Conclude that setting emission standards for factories and vehicles is a key mechanism by which the Clean Air Act helps reduce air pollution.
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