The Reason Why Cleanup Costs Are Lower for a Taxes

question 213

Multiple Choice

The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that

• A)all firms reduce pollution equally and fairly.
• B)firms that are able to clean up at lowest cost do so; others don't.
• C)large polluters clean up the most, which is always lowest cost.
• D)small polluters clean up the most, which is generally the cheapest.

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Definitions:

Check Register

A record maintained by account holders to track checks written, deposits made, and the current balance of a checking account.

Cash Balance

The amount of cash that a company or an individual has on hand at any given time.

Deposits

Funds placed into an account at a financial institution for safekeeping.

Adjusted Cash Balance

The cash balance reported on a company's financial statements, modified for checks that have not yet cleared or deposits in transit.