-If the Government Taxes Producers That Create Pollution, the Government's

question 52

Multiple Choice

-If the government taxes producers that create pollution, the government's policy

• A) forbids the firms from passing along higher costs.
• B) results in less production because the producers' costs have risen.
• C) eliminates pollution entirely by shifting the supply curve leftward.
• D) allows the firms to pass along higher costs but doesn't cut pollution.
• E) allows the producers to pollute more by increasing their costs.

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