Taxes Imposed on Polluting Firms,for Internalizing the Externalities Created by Them,may

question 41

Multiple Choice

Taxes imposed on polluting firms,for internalizing the externalities created by them,may not always lead to an efficient solution because:

• A)the taxes lowers the firms' incentives to reduce pollution
• B)it is difficult to determine the appropriate level of the tax that will result in an efficient output.
• C)firms that cannot earn positive economic profits after the tax is imposed will go out of business.
• D)the tax imposed by the government results in an increase in the average price level.

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Definitions:

Organization's Goals

Objectives set by a business or organization to guide its operations and to measure its success and performance.

Performance Measurement

The process of evaluating the efficiency, effectiveness, and productivity of an individual or organization, often using quantitative indicators.

Mixed-Standard Scale

A measurement tool that combines elements of criterion-referenced and norm-referenced tests to assess performance.

Behavioral Observation Scale

A tool used in performance management to rate and assess an employee's behavior based on specific observable actions within the workplace.