The Major Difficulty with Using a Tax on Pollution Instead

question 4

Multiple Choice

The major difficulty with using a tax on pollution instead of a fixed percentage reduction regulation is

• A)nonpayment of the tax.
• B)it would cause prices to rise.
• C)that it only works in theory.
• D)establishing the optimal size of the tax.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

Note Disclosure

Supplementary information provided in financial statements, offering insight into accounting policies, risks, and uncertainties.

Contingent Asset

An asset that might come into existence subject to the occurrence of some uncertain future event.

AASB 137

The Australian Accounting Standards Board standard that specifies the accounting for provisions, contingent liabilities, and contingent assets.