A pollution tax
a. is itself a form of negative externality
b. is a positive externality used to offset a negative one
c. is a price per unit of discharge of pollution
d. is a tax on pollution control equipment
e. may cause a common pool problem
C
You might also like to view...
Advances in chemical and biological applications before World War I (1914–1918) increased agricultural output per acre
Indicate whether the statement is true or false
Which of the following is true?
A) When income tax rates fall, it is possible for tax revenues to rise. B) When income tax rates fall, it is possible for tax revenues to fall. C) All economists agree that a monetary rule is preferred to discretionary Fed policy. D) All economists agree that discretionary Fed policy is preferred to a monetary rule. E) a and b