-Which of the following is true regarding pollution charges? i. They force a polluter to pay a price for its pollution.
Ii) They are based on the marginal external cost of pollution.
Iii) The fee that produces the efficient amount of pollution is easily determined.
A) i and ii
B) ii and iii
C) i and iii
D) i, ii and iii
E) i only

Question

-Which of the following is true regarding pollution charges? i. They force a polluter to pay a price for its pollution.
Ii) They are based on the marginal external cost of pollution.
Iii) The fee that produces the efficient amount of pollution is easily determined.
A) i and ii 
B) ii and iii 
C) i and iii 
D) i, ii and iii 
E) i only

Quizplus · Accepted Answer

Pollution charges indeed force polluters to pay for their pollution, aligning with the "polluter pays" principle, and are typically designed based on the marginal external cost of pollution to internalize the externalities. However, determining the fee that produces the efficient amount of pollution is not easily determined due to complexities in measuring the exact external costs and the dynamic nature of pollution and economic activities.

-Which of the Following Is True Regarding Pollution Charges? I