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:

Salaries Payable

A liability account that reflects the amounts owed to employees for services rendered but not yet paid.

Total Assets

The sum of all current and non-current assets owned by a company.

Total Expenses

The sum of all costs and expenses incurred by a business or organization during a specific period.

Accrued Wages

Wages that have been earned by employees but have not yet been paid or recorded in the financial statements.