An example of the specificity rule in action is
A. imposing price floors on "clean" products as a way to increase the demand for these products.
B. taxing the production of a product whose production creates a great deal of pollution.
C. taxing the consumption of a product whose production creates a great deal of pollution.
D. restricting imports to reduce environmental pollution.
Answer: B
You might also like to view...
With respect to factors of production, which of the following statements is not true?
A. Only those resources that are privately owned are counted as factors of production. B. In order to produce any good or service, it is necessary to have factors of production. C. Factors of production are also known as resources. D. Factors of production include land, labor, capital, and entrepreneurship.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge nine tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $5,000 C. $6,000 D. $9,000