For the Same Amount of Pollution Emitted,an Emissions Tax Is

question 20

Multiple Choice

For the same amount of pollution emitted,an emissions tax is said to be more efficient than is an environmental standard because all polluters:

• A)emit pollution up to the point at which the marginal benefit of polluting is equal to the emissions tax.
• B)emit the same amount of pollution,regardless of the marginal benefit of polluting.
• C)pay the same total tax bill for their pollution.
• D)reduce pollution emissions to zero.

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Definitions:

Balanced Trade

A situation in which the value of a country's exports equals the value of its imports over a certain period.

Net Exports

The value of a country's exports minus its imports; a positive number indicates a trade surplus, while a negative one indicates a trade deficit.

Trade Surplus

A situation in which a country's exports exceed its imports.

Exports

Goods or services sent from one country to another for sale or trade.