The government has adopted an emissions tax if it:
A)transfers the ownership of city air to a private firm that charges automobile drivers a profit-maximizing price,based in part on the pollution capacity of the atmosphere.
B)charges automobile drivers $0.10 for each unit of automobile emissions.
C)pays automobile drivers $0.10 for each 10% reduction in automobile emissions.
D)specifies the type of catalytic converter that must be used to reduce automobile emissions.

Question

Quizplus · Accepted Answer

Choice B is the only option that directly imposes a tax on automobile emissions, which serves as an incentive for drivers to reduce their emissions. Option A involves privatizing city air, which could have unintended consequences and may not effectively reduce emissions. Option C involves paying drivers for reducing emissions, which may not be financially feasible for the government and may not provide a strong enough incentive for drivers to change their behavior. Option D involves mandating a specific technology, which may not be the most cost-effective solution and could stifle innovation.

The Government Has Adopted an Emissions Tax If It