Taxes on Polluting Firms for Pollution Are Intended to

question 110

Multiple Choice

Taxes on polluting firms for pollution are intended to

• A)raise enough revenue to cut the deficit in half.
• B)encourage firms to reduce charges by polluting less.
• C)be efficient, i.e., result in no excess burden.
• D)raise revenue for general spending needs.

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Definitions:

Workers

Individuals engaged in a task or activity for wages or salary.

Diminishing Marginal Product

The decrease in the additional output gained from using an extra unit of a production input, holding all other inputs constant, beyond a certain point.

Marginal Product

The supplementary yield that comes from the utilization of an extra unit of a given input, with all other inputs remaining fixed.

Number of Workers

The total count of individuals currently employed or available for employment in a specific labor market.