Which of the Following Statements Is Correct About a Market

question 386

Multiple Choice

Which of the following statements is correct about a market in which pollution is emitted?

• A)Both corrective taxes and pollution permits internalize the externality of pollution.
• B)Corrective taxes internalize the externality of pollution, but pollution permits do not internalize that externality.
• C)Corrective taxes fail to internalize the externality of pollution, but corrective taxes internalize that externality.
• D)Neither corrective taxes nor pollution permits internalize the externality of pollution.

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Definitions:

Organic-rich Black Shale

Sedimentary rocks that contain high amounts of organic matter, typically appearing dark in color, and are potentially sources of fossil fuels.

Silica-rich Creatures

Marine organisms that have skeletons made primarily of silica, such as diatoms and certain types of sponges.

Gradational Boundaries

Transition zones where different geological formations or ecosystems meet and blend without a clear-cut separation.

Sedimentary Rock

Rock formed by the deposition of material at the Earth's surface and within bodies of water, characterized by distinct layers.