Which of the Following Is False

question 130

Multiple Choice

Which of the following is false?

• A) Under an emission tax, a tax is set and then the quantity of permissible pollution is determined.
• B) Under both emission taxes and tradable pollution permits polluters must pay to pollute.
• C) One possible approach to dealing with the problem of environmental negative externalities is a policy of tradable pollution permits, also known as cap and trade.
• D) Under a tradable pollution permits system, a price of pollution is set and then the quantity of permissible pollution is determined based upon that price.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, reflecting the actual cash value of inventory.

Accounts Receivable

The sum customers owe a corporation for goods or services delivered but not yet compensated.

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits.

Contra-Asset

An asset account where its balance is a negative figure, offsetting the balance of a related asset account.