Firms Are Likely to Prefer a Pollution Tax to a Command-And-Control

question 150

Multiple Choice

Firms are likely to prefer a pollution tax to a command-and-control policy because the command-and-control policy will

• A) increase the costs of production more than a pollution tax.
• B) result in the price of the good rising more than under a pollution tax.
• C) result in consumers buying less of the good than under a pollution tax.
• D) all of the above

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Definitions:

Green Roofs

Rooftops covered with vegetation and soil or a growing medium, installed over a waterproof membrane, to improve building insulation, reduce urban heat islands, and create habitats.

Geothermal Heat Pumps

Systems that use the stable underground temperature to provide heating, cooling, and hot water for buildings.

Geothermal Exchange

The process of using the Earth's constant underground temperature to heat and cool buildings.