The Government Prefers a Market-Based Approach to Reduce Firms' Emissions

question 176

Multiple Choice

The government prefers a market-based approach to reduce firms' emissions of a toxic gas but wants to make certain that no more than 1,000 cubic yards of the gas are ever emitted in a single day.The most efficient policy under these circumstances is likely to be a system of

• A)per-unit taxes on emissions of the gas.
• B)per-unit taxes on the goods produced by firms that emit the gas.
• C)subsidies to firms that agree not to emit the gas.
• D)sales of permits to emit specified quantities of the gas on specified days.

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Definitions:

Andrew Jackson

The seventh President of the United States (1829–1837), known for his populist approach and policies, including the Indian Removal Act.

Dred Scott Decision

The Dred Scott Decision was a controversial 1857 U.S. Supreme Court ruling that declared African Americans, whether enslaved or free, could not be American citizens and had no standing to sue in federal court.

Slave Power

A term used to describe the perceived political power held by slave owners in the United States prior to the Civil War, influencing legislation and policy to protect and expand slavery.

Chief Justice Roger Taney

The fifth Chief Justice of the United States, known for his controversial decision in the Dred Scott v. Sandford case, which stated that African Americans could not be American citizens.