Direct Controls Are Generally Much More Costly Than Emissions Taxes

question 36

Multiple Choice

Direct controls are generally much more costly than emissions taxes because

• A)under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently.
• B)emissions tax per unit of output is higher than the per-unit direct control program cost.
• C)government cannot legally levy emissions taxes that are as high.
• D)firms disregard emissions taxes.

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Definitions:

Reasonable Value

The fair or market value of goods or services, assessed based on what a reasonable buyer would be willing to pay under similar circumstances.

Lacked Capacity

Refers to a situation where an individual does not have the legal ability to enter into a binding contract, often due to age, mental condition, or intoxication.

Mental Impairment

A condition that significantly affects one's cognitive functions, potentially impacting daily living and activities.

Ratify

To formally approve or confirm, often referring to the approval of agreements, treaties, or constitutional amendments.