The Following Questions Refer to the Graph Below

question 21

Multiple Choice

The Following Questions Refer to the graph below.
-A tax of T₁ per unit on polluted discharge will induce the firm to

• A)Clean its discharge up to q₁ units per day rather than pay the tax
• B)Pay the tax rather than clean discharge up to q₁ units per day
• C)Clean its discharge exceeding q₁ units per day rather than pay the tax
• D)Pay the tax on all units
• E)(a)and (d)

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Definitions:

Redistribution of Income

A policy or process through which income is shifted from one segment of the population to another, often through taxation and welfare programs.

Income Inequality

Refers to the uneven distribution of income and wealth across the population, leading to disparities between individuals or groups.

Income Taxes

Taxes levied by governments on the income earned by individuals and entities, typically progressive in nature, meaning the rate increases with the income level.

Education and Training

The process of acquiring knowledge, skills, and competencies through teaching, study, or experience.