Taxes Are a More Effective Method of Controlling Pollution Than

question 114

Multiple Choice

Taxes are a more effective method of controlling pollution than are environmental standards because:

• A)standards allow greater flexibility.
• B)standards require less information.
• C)standards never require the efficient level of output.
• D)taxes encourage reducing pollution at the lowest possible cost.

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Definitions:

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.

Technological Advancement

The process of innovation and improvement in technology, leading to more efficient production methods and new products.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded.

Market Demand Schedule

A table showing the quantities of a particular good or service that consumers will purchase at various prices over a specified period.