Which of the following statements is correct?
a. The ideal solution to a pollution problem is to reduce pollution until it is technologically impossible to reduce it any further.
b. The ideal and fair solution to a pollution problem is to impose identical compliance standards on all polluting firms.
c. Charging firms for transferable emissions permits is a more efficient way of dealing with pollution than are compliance standards.
d. A per-unit pollution tax is a more efficient way of dealing with pollution than is a system of transferable emissions permits.
c
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"As the saying goes, the only sure things in life are death and taxes. This saying points out the result that everything having to do with taxes is an automatic fiscal policy." Is the preceding analysis correct or incorrect? Explain your answer
What will be an ideal response?
If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.