If the Government Were to Impose a Fee of $10

question 192

Multiple Choice

If the government were to impose a fee of $10 000 for each unit of air pollution released by a steel mill, this policy would be considered a:

• A) subsidy
• B) regulation
• C) Pigovian tax
• D) command-and-control policy

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Definitions:

Exchange Rates

The price of one currency in terms of another for conversion purposes.

National Governments

The organization that leads a country, making and enforcing laws, and managing public resources and services.

European Union (EU)

28-nation European economic alliance.

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The domestic marketplace within a country where goods and services are bought and sold.