Which of the Following Is a Difference Between Corrective Taxes

question 145

Multiple Choice

Which of the following is a difference between corrective taxes and tradable pollution permits?

• A)Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy.
• B)With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution.
• C)With corrective taxes firms pay for pollution; with tradable pollution permits firms do not.
• D)Corrective taxes internalize the pollution externality while tradable pollution permits do not.

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Definitions:

Depression

An ailment in emotional health marked by consistent depressive emotions or detachment from pleasures, leading to significant obstructions in day-to-day life.

Motivational Symptom

A symptom manifesting in decreased desire or drive to engage in previously pleasurable activities, often seen in various psychological disorders.

Unipolar Depression

A profound depressive disorder identified by perpetual feelings of sorrow or an indifference to the external environment.

Persistent Depressive Disorder

A chronic form of unipolar depression marked by ongoing and repeated symptoms of either major or mild depression.