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.
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The two sectors of the economy in the simple circular flow model are
A) the employed and the unemployed. B) households and businesses. C) foreign markets and domestic markets. D) the private sector and the public sector.
In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?
A) The slope is greater between x = 4 and x = 5. B) The slope is greater between x = 2 and x = 3. C) The slope is the same. D) The slope is not comparable.