An Advantage Offered by Pollution Taxes That Is NOT Offered

question 40

Multiple Choice

An advantage offered by pollution taxes that is NOT offered by command-and-control policies is that

• A) under pollution taxes pollution is usually reduced to zero.
• B) a pollution tax decreases the price of the polluting good.
• C) under pollution taxes, the government receives tax revenues that may be used to clean up pollution.
• D) pollution taxes decrease the demand for the good generating the pollution.

---

Definitions:

Sum of Squares

The total squared deviation of each observation from the mean, a measure of total variation within a dataset.

Unexplained

Refers to the portion of variance in a set of data that cannot be accounted for by the predictive variables in a statistical model.

Null Hypothesis

A statement in hypothesis testing that assumes no significant difference or effect exists between the parameters being tested.

F Statistic

A ratio used in statistical analysis to compare variances among sample groups, central to conducting an ANOVA test.