Which of the Following Is NOT a Possible Solution to the Problem

question 190

Multiple Choice

Which of the following is NOT a possible solution to the problem of pollution?

• A) Converting a resource that is communally owned into a privately owned resource.
• B) Imposing a tax on polluters that is related to the amount of pollution.
• C) Regulating the amount of pollution that a firm can produce.
• D) Subsidizing the costs of production of activities that generate pollution.

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Definitions:

Debt-Equity Ratio

A financial proportion indicating the use of debt versus equity in the capital structure for asset financing.

Cost of Equity

The return that investors require or expect to earn on their investment in a company's equity to compensate for the risk they undertake.

After-Tax Cost

The after-tax cost is the net cost of a transaction, investment, or other financial activity after taking into account the effect of taxes.

Debt-Equity Ratio

Measures a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.