Regulations to Reduce Pollution

question 265

Multiple Choice

Regulations to reduce pollution

• A) cause pollution levels to drop below the regulated amount.
• B) are a more costly solution to society than a corrective tax.
• C) allow firms with the lowest cost to reduce pollution by more than those with highest costs.
• D) are a better solution for the environment than a corrective tax.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Retention Ratio

The proportion of net income retained in a company rather than paid out as dividends to shareholders.

Market Price

The price level at which a service or asset is being offered for sale or purchase in the market now.

Ex-dividend Date

The specific date on which a stock trades without its dividend, meaning that if you purchase the stock on or after this date, you will not receive the next dividend payment.