Which of the Following Statements Is Not True of Both

question 161

Multiple Choice

Which of the following statements is not true of both pollution permits and corrective taxes?

• A)Both policies internalize the externality of pollution.
• B)Both policies require firms to pay for their pollution.
• C)Both policies lead to the establishment of an equilibrium price of pollution.
• D)Both policies increase the amount of pollution compared to the market equilibrium.

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