The Difference Between a Corrective Tax and a Tradable Pollution

question 309

Multiple Choice

The difference between a corrective tax and a tradable pollution permit is that

• A)a corrective tax sets the price of pollution and a permit sets the quantity of pollution.
• B)a corrective tax creates a more efficient outcome than a permit.
• C)a corrective tax sets the quantity of pollution and a permit sets the price of pollution.
• D)a permit creates a more efficient outcome than a corrective tax.

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Definitions:

Religious Wars

Conflicts primarily caused or justified by differences in religion, often involving the followers of different faiths or sects.

Star Chamber

A historic English court known for its secretive proceedings and harsh judgments, abolished in 1641.

Henry VII

The first monarch of the Tudor dynasty in England, ruling from 1485 to 1509, known for restoring the stability of the English monarchy and founding the Royal Navy.

High Courts

The senior courts in a country that typically handle appellate cases and significant legal matters, often with jurisdiction over other lower courts.