A tax on polluting emissions will
A)provide incentives for firms to reduce the volume of polluting materials
B)raise revenue sufficient to eliminate the deficit.
C)necessarily lower the price of the products.
D)require no agency to administer the tax.

Question

Quizplus · Accepted Answer

A tax on polluting emissions provides incentives for firms to reduce the volume of polluting materials, as they would try to avoid paying the tax by reducing their emissions. It may not necessarily eliminate the deficit, lower product prices or require no agency to administer the tax.

A Tax on Polluting Emissions Will