If the Government Taxes Producers That Create Pollution,the Government's Policy

question 212

Multiple Choice

If the government taxes producers that create pollution,the government's policy

• A) allows the producers to pollute more by increasing their costs.
• B) results in less production because the producers' costs have risen.
• C) eliminates pollution entirely by shifting the supply curve leftward.
• D) allows the firms to pass along higher costs but doesn't cut pollution.
• E) forbids the firms from passing along higher costs.

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Definitions:

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Conditional Privilege

A special right, immunity, permission, or benefit given to certain individuals that allows them to make any statements about someone without being held liable for defamation for any false statement made without actual malice.

Defamation

A wrongful act of communicating false statements about a person that injure the person's reputation or good name.

Actual Malice

In defamation, either a person's knowledge that his or her statement or published material is false or the person's reckless disregard for whether it is false.