Compared to a Fixed Percentage Reduction Regulation, a Tax on Pollution

question 152

Multiple Choice

Compared to a fixed percentage reduction regulation, a tax on pollution encourages:

• A)firms to reduce pollution by the same percent.
• B)firms to use the same technology to reduce pollution.
• C)firms that can more cheaply reduce pollution to make larger reductions.
• D)big firms to make larger reductions because they can more easily afford it.

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Definitions:

Forecast

A prediction or estimate of future events, especially concerning weather or economic conditions.

Questionnaires

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Delphi Method

A forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts.

Panel of Experts

A group of individuals with specialized knowledge or expertise in a particular field, convened to give advice or make decisions.