Per-Unit Pollution Reduction Subsidies

question 5

Multiple Choice

Per-unit pollution reduction subsidies

• A) are implemented by paying a polluter for using a particular type of abatement equipment
• B) can elevate profits, which encourages entry, and hence can perversely increase aggregate emissions
• C) are used exclusively in the United States at the federal level of government
• D) are designed to lower the costs of abatement technology

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Definitions:

Johnson Act

A U.S. law enacted in 1934, limiting the ability of individuals and entities within the United States to loan money or extend credit to nations in default on their debts to U.S. citizens.

Foreign Governments

The governing bodies or administrative authorities of countries other than one's own, involved in international relations and diplomacy.

American Banks

Financial institutions located in the United States, providing services such as savings accounts, loans, and financial transactions.

Economic Downturn

A period of declining economic performance across industries and markets, often characterized by reduced consumer spending and business investment.