An Advantage of Imposing a Tax on the Producer That

question 151

Multiple Choice

An advantage of imposing a tax on the producer that generates pollution is that

• A)it forces the polluting producer to internalise the external cost of the pollution.
• B)the government can keep tabs on exactly what is produced in an industry.
• C)it will eliminate pollution.
• D)a producer can pass the cost of the pollution to consumers.

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Definitions:

Magna Carta

A document signed in 1215 that established the principle that everyone is subject to the law, even the king, and guaranteed the rights of individuals.

Thomas Jefferson

The third President of the United States (1801–1809), a Founding Father, and the principal author of the Declaration of Independence.

First Amendment

The amendment to the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing essential rights and liberties to the citizens.