The Difference Between a Corrective Tax and a Tradable Pollution

question 309

Multiple Choice

The difference between a corrective tax and a tradable pollution permit is that

• A)a corrective tax sets the price of pollution and a permit sets the quantity of pollution.
• B)a corrective tax creates a more efficient outcome than a permit.
• C)a corrective tax sets the quantity of pollution and a permit sets the price of pollution.
• D)a permit creates a more efficient outcome than a corrective tax.

---

Definitions:

Civil Code

A systematic collection of laws designed to comprehensively deal with the core areas of private law such as property, family, and contracts.

Quebec

A province in Canada known for its French-speaking population and distinct legal system compared to the rest of Canada.

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various media channels.

Nonpersonal Communication

A type of messaging that does not involve direct personal contact between the sender and receiver, such as advertising, publicity, and sales promotions.