Figure 10-18

question 84

Multiple Choice

Figure 10-18. The graph represents a corrective tax to reduce pollution. On the axes, Q denotes the quantity of pollution and P represents the price of pollution.
-Refer to Figure 10-18. The tax depicted on the graph

• A)gives polluting firms an incentive to develop cleaner technologies.
• B)is viewed by most economists as less effective than a command-and-control policy as a means of reducing pollution.
• C)has the effect of moving the allocation of resources further from the social optimum than it would be in the absence of the tax.
• D)All of the above are correct.

---

Definitions:

Citizenship

The status of being a recognized member of a state, with rights and duties.

Joint Venture Management

The coordination and administration of a joint venture, which involves two or more entities collaborating on a business project, sharing resources, risks, and rewards.

Liability Assumption

Liability assumption is the agreement to take on the legal responsibilities or debts of another party.

Investment Extent

The degree or scale to which an individual or entity commits assets or capital to various types of investments with the expectation of achieving a financial return.