Unlike Pollution Taxes, What Do Pollution Permits Allow Governments to Do

question 81

Multiple Choice

Unlike pollution taxes, what do pollution permits allow governments to do?

• A) Remove the source of the externality.
• B) Give preferential treatment to industries deemed essential.
• C) Place the burden of the cleanup on polluters.
• D) Set limits on the amount of pollution generated.

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Definitions:

Macroeconomic Activity

The total economic activities and interactions at a national or global level, including production, consumption, saving, and investment.

Nondiscretionary Fiscal Policy

Government policies related to taxation and spending that automatically adjust without the need for explicit action by policy makers.

Legislative Changes

Modifications or alterations to existing laws enacted by a legislative body that can affect various sectors of the economy or society.

Budget Deficit

The financial situation in which a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.