If We Compare the Effects of a Pollution Tax with Those

question 93

Multiple Choice

If we compare the effects of a pollution tax with those of a command-and-control policy,production cost will be

• A) the same under a command-and-control policy and a pollution tax.
• B) higher under a command-and-control policy than they would be under a pollution tax.
• C) less under a command-and-control policy than they would be under a pollution tax.
• D) none of the above

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Definitions:

Standby Passengers

Travelers who wait for an available seat on a flight, typically flying at a reduced rate, due to not having a reservation for a specific departure.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

Consumer Ratings Magazine

Publications that evaluate and rate the quality and performance of products or services for consumer guidance.

New Automobiles

Refers to vehicles that have been recently manufactured, entering the market for the first time.