When the Government Determines the Permissible Level of Pollution and Issues

question 255

Multiple Choice

When the government determines the permissible level of pollution and issues permits to each polluting firm,this is a form of

• A)incentive-based regulation.
• B)command-and-control regulation.
• C)tax on pollution.
• D)government barrier to the workings of demand and supply.

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Definitions:

Salvage Value

The projected remaining worth of an asset upon the conclusion of its operational lifespan, frequently accounted for in determining depreciation.

Depreciation Expense

An accounting method allocating the cost of a tangible asset over its useful life.

Plant Assets

Durable physical assets employed in creating goods and services, including equipment, buildings, and machinery.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate at which an asset's book value depreciates compared to straight-line depreciation.