An Effluent Fee Is Imposed on a Steel Firm to Reduce

question 154

Multiple Choice

An effluent fee is imposed on a steel firm to reduce the amount of waste materials that it dumps in a river. Use the following two statements to answer this question: I. The more easily factors of production can be substituted for one another (for example, capital can be used to reduce waste water) , the more effective the fee will be in reducing effluent.
II) The greater the degree of substitution of capital for waste water, the less the firm will have to pay in effluent fees.

• A) Both I and II are true.
• B) I is true, and II is false.
• C) I is false, and II is true.
• D) Both I and II are false.

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Definitions:

Volcanic Cinders

Small, porous pieces of pyroclastics that are ejected from a volcano during an explosive eruption.

Scoria Cone

A volcanic cone formed out of tephra (volcanic debris) and cinders that accumulate around and downwind from a volcanic vent.

Shield Volcano

A type of volcano with gently sloping sides formed by the eruption of low-viscosity lava that can flow long distances.

Composite Volcano

A type of volcano characterized by eruptions that have both explosive and effusive segments, often creating steep profiles with layered structures resulting from alternating lava flows, ash, and other volcanic debris.