One Advantage of Pollution Permits Over Pollution Taxes Is

question 55

Multiple Choice

One advantage of pollution permits over pollution taxes is

• A) pollution permits allow firms to choose their profit-maximizing level of pollution while taxes do not.
• B) pollution permits generate more revenue for the government than do pollution taxes.
• C) the government can set a maximum level of pollution using pollution permits.
• D) none of the above

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Definitions:

Overpayment Error

A financial mistake where more money is paid out than is owed or necessary, leading to a discrepancy in accounts.

Cash

A form of liquid asset that includes currency, coins, bank deposits, and other mediums of exchange that can be used immediately for transactions.

Trial Balance Totals

The aggregate amounts of all debits and credits in a company's trial balance, which should match to indicate that the accounting entries are balanced.

Journal Entry

A record in the accounting journal that details all the financial transactions of a business and their impact on its accounts.