Which of the Following Is a Main Political Objection Against

question 212

Multiple Choice

Which of the following is a main political objection against using the market to reduce pollution?

• A)Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare.
• B)Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters.
• C)Firms already pay a high corporate tax.
• D)Consumers do not have the same built in tax loopholes as firms.

---

Definitions:

Straight-Line Depreciation

A method of allocating an asset's cost evenly throughout its useful life.

MACRS

Modified Accelerated Cost Recovery System; a method of depreciation applied in the United States that allows businesses to recover investments in certain property over a specified life.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received.

Accelerated Depreciation

A method of depreciation that allows a business to allocate larger portions of the cost of an asset to earlier years of its useful life.