Why do you suppose that taxes are often used in place of effluent charges in order to combat pollution?

What will be an ideal response?


Since pollution is often difficult to measure imposing taxes on the amount of production is a way of making it easier since the assumption is that the amount of pollution is typically proportional to production levels.

Economics

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Economies of scale in production act as a source of:

A) legal market power. B) natural market power. C) restricted market power. D) regulated market power.

Economics

When the economy is at equilibrium,

A. There are no leakages. B. Inventories must equal zero. C. Leakages equal aggregate demand. D. Leakages equal injections.

Economics

Which of the following is an item in the U.S. capital account?

A. exports of services B. the change in private U.S. assets abroad C. net transfer payments D. net investment income

Economics

All of the following are long-run changes, except:

A. An industry expands as more firms enter it B. A firm moves into larger production facilities to expand production C. Some firms decide to leave an industry and the industry contracts D. A firm produces more output by acquiring more raw materials for its existing factory

Economics