Which of the Following Is a Difference Between Corrective Taxes

question 145

Multiple Choice

Which of the following is a difference between corrective taxes and tradable pollution permits?

• A)Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy.
• B)With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution.
• C)With corrective taxes firms pay for pollution; with tradable pollution permits firms do not.
• D)Corrective taxes internalize the pollution externality while tradable pollution permits do not.

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Definitions:

Speedier Method

A more efficient and rapid process or technique to achieve a certain objective or outcome.

Confidentiality

The requirement to keep certain information secret or private, often seen in professional or contractual relationships.

Less Costly

Referring to an option or solution that is cheaper or requires less financial expenditure compared to others.

Charged Criminally

The formal accusation made against an individual by a governmental authority asserting that the individual has committed a crime.