If the Government Were to Impose a Fine of $1,000

question 7

Multiple Choice

If the government were to impose a fine of $1,000 for each unit of air-pollution released by a steel mill,the policy would be considered

• A) a subsidy.
• B) a regulation.
• C) a corrective tax.
• D) an application of the Coase theorem.

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Definitions:

Internal Control

Systems and processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

Objectives

The goals or aims that an organization or individual strives to achieve over a certain period.

Implementation

The process of putting a decision or plan into effect; execution of a plan, idea, or policy.

Bank Statement Adjustment

Modifications made to a company's cash account records to reconcile them with the bank statement's transactions and balance.