A Corrective Tax

question 5

Multiple Choice

A corrective tax

• A)allocates pollution to those factories that face the highest cost of reducing it.
• B)is a form of regulation.
• C)works well for all types of externalities.
• D)is inferior to regulatory policy according to most economists.

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Definitions:

Burglary

The unlawful entry into a building or other location with the intention to commit theft or any felony.

Trespassing

Unlawfully entering or remaining on someone else’s property without permission, which can result in legal consequences.

Prosecution

The legal party responsible for presenting the case in a criminal trial against an individual accused of breaking the law.

Administrative Procedure Act

A 1946 American law that governs the process by which federal agencies develop and issue regulations.