Question

Congress passed a new law that taxes car producers based on the amount of pollutants their plants release into the atmosphere. This new law is an example of which role of government?

A. Discouraging negative externalities
B. Promoting competition in the market
C. Protecting the environment
D. Preventing labor unions

Answer 1

The new law that taxes car producers based on the amount of pollutants their plants release into the atmosphere is an example of the role of government in protecting the environment.

Step-by-step explanation:

The new law that taxes car producers based on the amount of pollutants their plants release into the atmosphere is an example of the role of government in protecting the environment. By imposing this tax, Congress aims to discourage car producers from releasing excessive pollutants and encourage them to adopt cleaner production methods.

This is a command-and-control regulation approach where the government sets specific rules and restrictions to achieve its environmental goals.