Which of the following is not an advantage of a pollution tax?
A. It allows firms to equate its marginal abatement cost and the marginal benefit (tax savings).
B. It allows a low-cost firm to abate more.
C. It provides firms an incentive to invest in pollution abatement technologies.
D. It allows us to predict the total volume of pollution that will be discharged.
Answer: D
You might also like to view...
If Ford Motor Company and General Motors Corporation were to merge, this would represent
A. a horizontal merger.
B. a cartel.
C. a vertical merger.
D. an up-and-down merger.
Refer to the scenario above. If the government of India wants to repay a lower sum of money to the U.S., it should:
A) buy both dollars and rupees. B) sell both dollars and rupees. C) buy dollars and sell rupees. D) buy rupees and sell dollars.
Refer to Table 2-19. What is Betty's opportunity cost of making a statue?
A) 1/2 of a bench B) 1.4 statues C) 1/3 of a bench D) 2 benches
When the economy is operating at an unemployment rate below the full employment rate,
a. actual output is above potential output b. actual output equals potential output c. actual output is below potential output d. frictional unemployment has been eliminated e. structural unemployment has been eliminated