Using Permit Markets to Combat Regional Water Pollution Can Be

question 34

Multiple Choice

Using permit markets to combat regional water pollution can be problematic because

• A) permits are issued nationally, and water pollution is local.
• B) the permit price is set via the Chicago Mercantile Exchange
• C) taxes to pay for permits must be approved by voters
• D) there are a relatively small number of traders

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Definitions:

Sales And Excise Taxes

Sales and excise taxes are forms of indirect taxation imposed on the sale of certain goods and services, where excise taxes are often levied on specific products like tobacco or alcohol.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.