If the Government Taxes Producers That Create Pollution,the Government's Policy

question 212

Multiple Choice

If the government taxes producers that create pollution,the government's policy

• A) allows the producers to pollute more by increasing their costs.
• B) results in less production because the producers' costs have risen.
• C) eliminates pollution entirely by shifting the supply curve leftward.
• D) allows the firms to pass along higher costs but doesn't cut pollution.
• E) forbids the firms from passing along higher costs.

---

Definitions:

Income Growth

An increase in the amount of money earned by individuals or households over time.

Country

A distinct territorial body or political entity that is recognized as an independent nation.

Capital Accumulation

The growth of assets or wealth through investment or profits, often reinvested to generate further growth.

Costly

Something described as costly is considered to have a high price or to entail a great expense, often in terms of money, time, or effort.