If Paper-Pulp Factories Generate Too Much Water Pollution with Their

question 52

Multiple Choice

If paper-pulp factories generate too much water pollution with their discharge, which kills local fish stocks then:

• A)the government will not be able to do anything to stop this
• B)the factories will be concerned about the loss of fish and reduce their pollution
• C)the government can treat the water for pollution and restock the river
• D)the government can use environmental regulations to reduce the pollution and improve economic well being

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Definitions:

Seller Bears

Refers to situations where the seller is responsible for costs or burdens, such as during the transaction of goods where the seller pays for shipping or returns.

Encourage Market

Strategies or policies implemented to stimulate economic activity within a market by promoting the production and consumption of goods and services.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare, indicating who ultimately bears the burden of the tax.

Tax Burden

The tax burden refers to the total amount of taxes that individuals, businesses, or other entities must pay, expressed as a percentage of income or GDP.