Which of the Following Is a Difference Between Corrective Taxes

question 145

Multiple Choice

Which of the following is a difference between corrective taxes and tradable pollution permits?

• A)Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy.
• B)With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution.
• C)With corrective taxes firms pay for pollution; with tradable pollution permits firms do not.
• D)Corrective taxes internalize the pollution externality while tradable pollution permits do not.

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Definitions:

Procedural Memories

Memories for the performance of actions or skills, often known as "muscle memory," which are recalled without conscious awareness.

Well-Learned

The state of having thoroughly practiced or mastered a skill, knowledge, or task through repetition.

Automatic Skills

Skills that are performed with little conscious thought, often developed through repeated practice and learning.

Two-Track Mind

The concept of the mind simultaneously processing information on two different levels; conscious and unconscious.