Emission Taxes Create Efficiencies by

question 96

Multiple Choice

Emission taxes create efficiencies by

• A) reducing pollution at each firm by an equal amount.
• B) allowing firms with higher costs of polluting to pollute more and firms with lower costs of polluting to pollute less.
• C) reducing efficiencies to zero.
• D) allowing firms with higher costs of polluting to pollute less and firms with lower costs of polluting to pollute more.

---

Definitions:

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often studied in psychology to understand subconscious desires and processes.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Cigar

A tightly-rolled bundle of dried and fermented tobacco that is smoked.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.