The Purpose of an Effluent Fee Is to

question 253

Multiple Choice

The purpose of an effluent fee is to

• A) reduce the amount produced of a good and to raise the market price.
• B) correct for pollution while keeping the price of the good the same as before the correction.
• C) reward people producing externalities.
• D) encourage producers to keep the quantity produced the same while lowering the price.

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Definitions:

Investment Account

An account held at a financial institution or brokerage that holds assets like stocks, bonds, mutual funds, and other investments.

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.

Outstanding Shares

The total number of shares of stock that are currently held by all shareholders, including share blocks held by institutional investors and restricted shares.

Beginning of the Year Balance

The amount of money or value of an account at the start of a fiscal year before any transactions have been accounted for.