Some Politicians Rally Against Using the Market to Reduce Pollution

question 118

Multiple Choice

Some politicians rally against using the market to reduce pollution because

• A)pollution charges and tradable permits allow firms to pollute as long as they can pay for it.
• B)polluting firms do not care about the environment, so something must be done.
• C)government-run industries have been better at controlling their pollution costs when compared to privately run firms
• D)pollution charges and tradable permits do not penalize polluting firms.

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Definitions:

Net Sales

Total sales revenue minus returns, allowances, and discounts, representing the actual revenue earned from sales.

Gain On Sale

The profit that is realized from the sale of an asset or investment, which exceeds the purchase price.

Interest Expense

The expenditure on borrowed funds that an entity bears over a certain period.

Purchase Returns And Allowances

Transactions where a buyer returns goods to the seller or receives a reduction in the purchase price for unsatisfactory goods.