In Some Cases, Pollution Permits May Be Better Than a Pigovian

question 9

Multiple Choice

In some cases, pollution permits may be better than a Pigovian tax because:

• A)Pigovian taxes reduce pollution by a greater amount than pollution permits
• B)pollution permits generate more revenue for the government than a Pigovian tax
• C)pollution is difficult to measure
• D)the government has more explicit control over the quantity of pollution created with permits

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Definitions:

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A law passed by the U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Securities Act of 1933

United States federal law enacted as a result of the stock market crash of 1929, which requires securities sold to the public to be registered and regulated.

Form 8-K

A report filed by publicly traded companies with the SEC to announce significant events that shareholders should know about.

Middle Manager

A managerial position typically below top management and above frontline managers, responsible for implementing the policies and plans developed by senior management.