Economists Argue That the Level of Pollution Should Be

question 201

Multiple Choice

Economists argue that the level of pollution should be

• A)reduced completely to zero because by definition, it has a negative external effect.
• B)ignored because it has always been present since the beginning of history.
• C)reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society.
• D)best determined by elected officials who can speak on behalf of the public.

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Definitions:

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.

Tax Rate Structure

The framework defining how tax rates progress based on variables such as income level, value of property, or volume of transaction.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount of the taxable income or goods.