Which of the Following Is a Main Political Objection Against

question 212

Multiple Choice

Which of the following is a main political objection against using the market to reduce pollution?

• A)Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare.
• B)Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters.
• C)Firms already pay a high corporate tax.
• D)Consumers do not have the same built in tax loopholes as firms.

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Definitions:

Drawings

Withdrawals of cash or other assets from a business by the owner for personal use.

Capital Statement

A financial statement that outlines the changes in owners' equity over a specific period.

Drawings

Withdrawals made by an owner from the business for personal use, reducing the capital account of the owner.

Capital Investment

Funds invested in a business by the owners or shareholders to purchase assets or to provide working capital with the aim of generating long-term revenue and profits.