A Uniform Tax According to the Physical Quantities of Pollution

question 272

Multiple Choice

A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because

• A) it places a unfair burden on small producers.
• B) a uniform tax can only account for social costs and not external costs.
• C) a firm will reduce production.
• D) it may not adequately account for economic damages.

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Definitions:

Consequences

Consequences refer to outcomes or effects that directly result from actions or conditions, often implying a reaction to what has been done or what has occurred.

Accomplish

To achieve or complete successfully a task, goal, or objective.

Chance

The occurrence of events without apparent cause, or the unpredictable and uncontrollable aspect of happenings.

Control

In experimental research, the practice of limiting the influence of confounding variables to determine the effect of the independent variable on the dependent variable more accurately.