What is not true for a system of financial penalties for polluters?
A)Firms may be fined for pollution.
B)Firms might have to pay a tax for each unit of pollution created.
C)Firms would be encouraged to pollute less.
D)Firms are always guaranteed the permit to pollute.

Question

Quizplus · Accepted Answer

The statement "Firms are always guaranteed the permit to pollute" is not true for a system of financial penalties for polluters. In fact, such a system may involve a cap-and-trade approach where firms are only allowed to emit a certain amount of pollution and must purchase permits to cover any excess emissions.

What Is Not True for a System of Financial Penalties