The Government Can Aid in Reducing Pollution by Using a Policy

question 98

True/False

The government can aid in reducing pollution by using a policy of cap-and-trade, which means that polluters are taxed on the amount of pollution they discharge.

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Definitions:

Progressiveness

A political or social philosophy advocating or implementing social reform or new, liberal ideas.

Tax Revenue

The income that is gained by governments through taxation, forming a significant part of their funding for public expenditures.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to price changes.

Inelastic Supply

A supply condition where quantity supplied does not change significantly when there is a change in price.