Which of the Following Equations Is Incorrect

question 76

Multiple Choice

Which of the following equations is incorrect?

• A) P_cum - P_ex = Div ×
• B) P_cum - P_ex = Div ×
• C) =
• D) (P_cum - P_ex)(1 - τ_d) = Div(1 - τ_g)

---

Definitions:

Tradable Pollution Permits

An economic strategy aimed at reducing pollution through financial motivations designed to cut down on pollutant emissions.

Corrective Taxes

Taxes imposed to correct the effects of a market failure, often used to discourage harmful behaviors and internalize externalities.

Environmental Protection

The practice of safeguarding the environment by minimizing pollution, conserving natural resources, and promoting biodiversity through regulations and initiatives.

Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution; these can be traded in a market to incentivize the reduction of overall pollution levels.