Most Economists Prefer Corrective Taxes to Regulation to Correct the Pollution

question 133

Multiple Choice

Most economists prefer corrective taxes to regulation to correct the pollution problem because:

• A) the market-based solution is less costly to society.
• B) the market-based solution can result in a greater reduction in pollution.
• C) the market-based solution raises revenue for the government.
• D) all of the above.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset loses an equal amount of value each year over its useful life.

Initial Investments

The upfront costs required to start a new project, business venture, or investment, including equipment, inventory, and property.

Initial Investments

The upfront capital put into a project or business to get it started.

Income Taxes

Taxes imposed by the government on individuals or entities based on their net income or profit.