Government-imposed quantitative limits on the amount of pollution firms are allowed to produce is an example of?

The correct choice identifies the method of regulating pollution through government-imposed quantitative limits as a command and control approach. This approach involves direct regulations where the government sets specific limits on the amount of pollutants that firms can emit. By setting these limits, the government makes it clear what is permissible, and firms are required to comply.

This method contrasts with market-based approaches, which rely on economic incentives, such as taxes or tradable permits, to encourage firms to reduce pollution. While such systems can provide flexibility and cost-effectiveness, they do not involve strict quantitative limits on emissions in the same way command and control does.

Additionally, an economic incentive approach focuses on modifying behavior through financial incentives or disincentives rather than through direct regulation. Voluntary compliance strategies, on the other hand, rely on firms taking initiative without mandatory regulations. Therefore, the essence of command and control is that it entails specific regulations with defined limits, which is why it’s the correct answer.