Which of the Following Is a Distinctive Trait of Incentive

question 24

Multiple Choice

Which of the following is a distinctive trait of incentive approaches?

• A) Incentive approaches impose a cost on pollution-causing activities, leaving it to individual polluters to decide how best to respond.
• B) Incentive approaches attain social efficiency by requiring polluters to externalize the social costs of pollution externalities.
• C) Incentive approaches does not take into account the benefits and costs of attaining environmental objectives.
• D) Incentive approaches centralize pollution-control decisions.

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Definitions:

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to assess its viability.

Average Accounting Return

The average accounting return is a financial ratio that measures the profitability of an investment as the average net income the investment generates divided by the book value of the investment's initial cost.

Straight Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.