An Advantage of Pollution Taxes That Is NOT Offered by Command-And-Control

question 36

Multiple Choice

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

• A) with a pollution tax zero pollution is produced.
• B) a pollution tax decreases the price of the polluting good.
• C) with a pollution tax, firms have flexibility in their choice of strategies to use to clean up pollution.
• D) a pollution tax decreases the demands for goods that cause pollution.

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Definitions:

Dependent Variable

The variable in an experiment or study that is expected to change as a result of manipulations to the independent variable.

Telecommuting Policies

Guidelines that govern the practices and conditions under which employees can work from locations outside the traditional office.

Turnover

In a business context, the rate at which employees leave a company and are replaced by new employees.

Independent Variable

A variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.