Which of the Following Statements Is Not Correct

question 78

Multiple Choice

Which of the following statements is not correct?

• A)Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level.
• B)Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution.
• C)Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.
• D)Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment.

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Definitions:

Information Gathering

The process of collecting data from various sources to analyze situations, make decisions, or increase understanding of a topic.

Performance Threats

Performance threats refer to potential or actual obstacles that can impair the effectiveness and efficiency of an individual's or organization's ability to meet objectives.

Problem Solvers

Individuals or entities adept at finding solutions to challenges or issues.

Information Processing

The act or process of receiving, categorizing, storing, and interpreting data by human or machine systems.