An Effluent Fee

question 137

Multiple Choice

An effluent fee

• A) is a reward to companies using production methods that create positive externalities.
• B) is also called a pollution subsidy.
• C) gives a firm the right to pollute if it pays a tax on what it discharges.
• D) is intended to influence the market by increasing supply and decreasing price.

---

Definitions:

Divorced Persons

Individuals who have legally terminated their marriage.

Kamikaze Pilots

Members of the Japanese military during World War II who executed suicide missions, crashing their aircraft loaded with explosives into enemy targets.

Rational Suicide

Suicide in which the individual is not insane and is aware of what he or she is doing.

Altruistic

An altruistic act is one motivated by the selfless concern for the well-being of others, without expecting any reward in return.