Which of the Following Statements About Abatement Subsidies Is NOT

question 30

Multiple Choice

Which of the following statements about abatement subsidies is NOT true?

• A) Environmental groups dislike abatement subsidies because they appear to reward polluters.
• B) Governments like abatement subsidies because they are relatively inexpensive to implement.
• C) Abatement subsidies are popular with firms.
• D) Abatement subsidies create perverse incentives for firms to increase emissions when their base levels are being set.

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Definitions:

Market System

A market system is an economic system where prices and the distribution of goods and services are determined by supply and demand in a competitive market.

Goods and Services

The physical items (goods) and actions or activities (services) that people produce and consume to satisfy their needs and wants.

Willing and Able

Refers to a consumer's readiness and capacity to purchase goods or services at a given price level.

Market System

An economic system in which economic decisions and the pricing of goods and services are guided by the interactions of citizens and businesses.