Which of the Following Statements Is Not Correct

question 78

Multiple Choice

Which of the following statements is not correct?

• A)Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level.
• B)Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution.
• C)Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.
• D)Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment.

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Definitions:

Internal Users

Individuals within an organization, such as management and employees, who use financial and other company information for decision-making purposes.

Accounting Data

Information related to financial transactions and events which are used in the preparation of financial statements.

Public Accountants

Professionals who provide accounting services to various clients, including individuals, businesses, and government entities.

Budgeting

The process of creating a plan to spend your money, forecasting future income and expenses over a specified period.