Which of the Following Statements Is Correct About a Market

question 281

Multiple Choice

Which of the following statements is correct about a market in which pollution is emitted?

• A)Both corrective taxes and pollution permits move the market toward the social optimum.
• B)Corrective taxes move the market toward the social optimum, but pollution permits do not move the market toward the social optimum.
• C)Pollution permits move the market toward the social optimum, but corrective taxes do not move the market toward the social optimum.
• D)Neither corrective taxes nor pollution permits move the market toward the social optimum.

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Definitions:

Brown v. Board

The 1954 Supreme Court case that declared state laws establishing separate public schools for black and white students unconstitutional.

Landmark Decision

A court ruling that marks a significant change in the interpretation of the law or sets a new precedent.

Importance

Refers to the quality or state of being important, having significant value or influence on matters at hand.