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.

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Definitions:

Hardiness

A personality trait characterized by resilience and the ability to endure stressful situations without becoming overwhelmed.

Demands Of Stress

Demands of stress refer to the various physical or psychological requirements placed on an individual that necessitate adaptation or coping strategies.

Change

The act or process of becoming different, which may occur naturally over time or result from intervention.

Irrational Appraisal

An evaluation or judgment of a situation or event that significantly distorts reality, often leading to inappropriate emotional or behavioral responses.