Which of the Following Statements Is Correct

question 303

Multiple Choice

Which of the following statements is correct?

• A)The use of pollution permits and corrective taxes reduces the cost of environmental protection.
• B)Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
• C)Clean water and clean air are goods to which the law of demand applies.
• D)All of the above are correct.

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Definitions:

Tax and Transfer Programs

Government initiatives designed to redistribute income through taxation and then allocate these funds to various social welfare programs.

Allocating Income

The process of distributing earned income among various expenditures, savings, and investments.

Optimal Distribution

The allocation of resources in a manner that maximizes efficiency and effectiveness, often in terms of cost, access, or utility.

Earned Income Tax Credit

A refundable tax credit aimed at benefiting workers with low to moderate income, encouraging and rewarding work.