An Advantage of Imposing a Tax on the Producer That

question 58

Multiple Choice

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

• A)it forces the polluting producer to internalize 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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