Pollution Taxes Are Preferred to Direct Controls Because They Don't

question 82

True/False

Pollution taxes are preferred to direct controls because they don't require a way of measuring pollutants produced.

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Definitions:

Public Good

A public good is a good that is non-excludable and non-rivalrous, meaning it can be used by everyone freely without depleting its availability to others.

Nonrivalry

A characteristic of certain goods where the consumption by one individual does not reduce availability to others, often seen in digital or public goods.

Nonexcludability

A characteristic of certain goods where it is difficult or impossible to prevent someone from using the good once it has been provided.

Optimal Quantity

The amount of a good or service that yields the maximum benefit or utility to the consumer or producer.