Which of the Following Statements Is True of Both Pollution

question 404

Multiple Choice

Which of the following statements is true of both pollution permits and corrective taxes?

• A)Both policies internalize the externality of pollution.
• B)Both policies require firms to pay for their pollution.
• C)Both policies lead to the establishment of an equilibrium price of pollution.
• D)All of the above are correct.

---

Definitions:

Social Interactions

The process by which individuals act and react in relation to others, forming the basis of social relationships.

Self-stereotype

The beliefs that individuals hold about the characteristics of their own group, which can influence behavior and self-perception.

Stigmatized

Marked by a disgrace or reproach as being socially unacceptable or undesirable.

Prejudice

A negative attitude toward an individual solely on the basis of that person’s presumed membership in a particular group.