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:

Gastric Secretion

is the process of producing and releasing fluids by the gastric glands in the stomach, including acid, enzymes, and mucus.

Acidic Chyme

The partially digested, acidic fluid that passes from the stomach to the small intestine, consisting of gastric juices and partly digested food.

Gastrin

A hormone that stimulates the secretion of gastric acid by the stomach's parietal cells for digestion.

Hepatopancreatic Ampulla

Dilation within the major duodenal papilla that normally receives both the common bile duct and the main pancreatic duct.