Why do most economists favor emissions taxes over direct controls as a pollution deterrent?
What will be an ideal response?
Direct controls require monitoring and enforcement; pollution taxes are automatic and certain. Direct controls do not consider which firms can reduce pollutants at the lowest cost; whereas taxes encourage the lowest-cost firms to switch to alternative technology and avoid the tax.
You might also like to view...
A variety of statistical studies based on the U.S. experience suggests that when government borrowing increases by $1, private saving rises by about
a. 10 cents. b. 30 cents. c. 50 cents. d. $1.
The difference between positive statements and normative statements is that
A) a positive statement involves a value judgment and a normative statement is a statement of fact. B) a positive statement is a statement of fact and a normative statement involves value judgments. C) value judgments are made in normative statements but assumed in positive statements. D) normative statements are provable while positive statements are not.
Disembodied technical change is one reason why
A. labor productivity has increased over time. B. the quality of capital had decreased. C. increases in population decrease labor productivity. D. human capital is more valued in an economy than physical capital.
Figure 21-1
In Figure 21-1, the optimal amount of equality lies only between which points?
A. A and B B. C and D C. D and E D. B and E