Empirical Evidence Indicates That Imposing Taxes on Polluting Emissions by Firms

question 94

Multiple Choice

Empirical evidence indicates that imposing taxes on polluting emissions by firms

• A)has no effect on the amount of pollution emitted.
• B)does not give the government leeway to regulate more dangerous emissions differently than less dangerous emissions.
• C)does reduce the amount of pollution emitted.
• D)discourages firms from investing in new methods of pollution abatement.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

The provision of resources, such as money, goods, or services, with the expectation of future repayment, often with interest.

Predetermined Overhead

An estimated overhead cost rate used to allocate overhead costs to products or services based on a planned activity level.