Compared to a Fixed Percentage Reduction Regulation,a Tax on Pollution

question 113

Multiple Choice

Compared to a fixed percentage reduction regulation,a tax on pollution encourages

• A)all firms to reduce pollution by the same percent.
• B)all firms to use the same technology to reduce pollution.
• C)firms that can most cheaply reduce pollution to make sizable reductions.
• D)economic inefficiency.

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Definitions:

Lessee

A person or entity who leases property or equipment from another, the lessor, under a lease agreement.

Right-Of-Use Asset

An asset that represents a lessee's right to use an underlying asset for the lease term under an agreement.

Debt-To-Equity Ratio

The ratio highlights the balance of debt and equity used in the financial structuring of a company's assets.

Total Liabilities

The aggregate of all debts and financial obligations a company owes to outside parties, reflected on the balance sheet.