If the Government Were to Impose a Fine of $4,000

question 461

Multiple Choice

If the government were to impose a fine of $4,000 for each unit of air-pollution released by a fertilizer plant, the policy would be considered

• A)a subsidy.
• B)a regulation.
• C)a corrective tax.
• D)an application of the Coase theorem.

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Definitions:

Even-Handed Explanation

An impartial and balanced description or reasoning that does not favor one side over another.

Power-Influence Research

The study of how power affects individuals and groups and how it influences behaviors and decisions.

Influence Processes

The methods and techniques used to affect the attitudes, behaviors, or perceptions of others.

Contingency Theory

Contingency theory asserts that the effectiveness of leadership or decision-making processes depends on the context or environment in which they occur, suggesting there is no one best way to manage or lead.