A Pollution Tax

question 100

Multiple Choice

A pollution tax

• A)is itself a form of negative externality
• B)is a positive externality used to offset a negative one
• C)is a price per unit of discharge of pollution
• D)is a tax on pollution control equipment
• E)may cause a common pool problem

---

Definitions:

Financial Distress

An instance wherein a business faces challenges or fails to satisfy its monetary debts to creditors.

Trade-off

The process of sacrificing one quality, quantity, or property to gain another.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered or used but not yet paid for.