Compared to a Fixed-Percentage Reduction Regulation,a Tax on Pollution Encourages

question 32

Multiple Choice

Compared to a fixed-percentage reduction regulation,a tax on pollution encourages

• A) all firms to reduce pollution by the same percentage.
• B) all firms to use the same technology to reduce pollution.
• C) firms that can most cheaply reduce pollution to make sizeable reductions.
• D) firms that find pollution reduction expensive to pollute even more.
• E) economic inefficiency.

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus, resulting from the repeated pairing with an unconditioned stimulus that naturally elicits a response.

Generalization

The process of responding similarly to different but related stimuli, often used to explain how people apply learning from specific instances to broader contexts.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Respondent Behavior

A type of behavior that occurs as a direct response to a specific stimulus in the environment, typically automatic and reflexive in nature.