Statistical Studies Suggest That the Cost of Direct Controls for Any

question 173

Multiple Choice

Statistical studies suggest that the cost of direct controls for any target level of pollution is

• A)much higher than the cost of taxes on emissions.
• B)about the same as the cost of taxes on emissions.
• C)lower than the cost of taxes on emissions.
• D)impossible to compare to the cost of taxes on emissions.

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Definitions:

Economic Choices

Decisions made by individuals, households, or firms regarding the allocation of scarce resources to satisfy needs and wants.

Income Tax

A tax levied by governments on individuals or entities' income, constituting a major source of government funding.

Present and Future Consumption

The concept of analyzing and balancing what is consumed today against what will be available or necessary for consumption in the future.

Efficient Taxation

A taxation system designed to minimize the economic costs or distortions that it imposes on society, while achieving desired revenue and distributional effects.