An Effluent Fee Is a

question 232

Multiple Choice

An effluent fee is a

• A) subsidy given to the producer of a positive externality.
• B) charge to a polluter that gives the right to discharge pollution into the air.
• C) fine imposed on a polluter for dumping illegal pollution.
• D) charge for a public good.

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Definitions:

Gains from Trade

The increase in welfare or benefit that countries or individuals obtain by engaging in voluntary trade with each other, enabling more efficient allocation of resources.

Specialization

The process whereby individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater efficiency and productivity.

Price of a Dollar

A term not commonly used in economics or finance, potentially confusing but might refer to the value of the US dollar in terms of foreign currency exchange rates.

Trade Flow

Refers to the movement of goods and services between countries, indicating the import and export activities.