The government wants to enact tax legislation aimed at reducing increasing discharge levels of toxins into municipal waste water systems. The annual cost of the tax to the 100 worst industrial polluters will be $5 million each. The annual benefits of the tax, in terms of reduced toxin levels in water systems, are valued at $25 per person. There are 300 million people directly affected by the 100 worst industrial polluters. The total cost of this tax is _______ while the total benefit to society is _______.

Question

Quizplus · Accepted Answer

The total cost of the tax is $500 million ($5 million x 100 polluters). The total benefit is $7.5 trillion ($25 per person x 300 million people).

The Government Wants to Enact Tax Legislation Aimed at Reducing