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Which of the Following Is NOT an Example of a Corrective

Question 105

Multiple Choice

Which of the following is NOT an example of a corrective tax or subsidy used to address an externality problem?


A) A country charges a set fee to companies that manufacture in the country for every 100 gallons of a particular chemical that they release into the country's lakes and waterways.
B) The government sets a limit on the quantity of pollution companies can emit by issuing a set number of pollution permits that companies can trade.
C) An environmental protection organization publishes and publicizes an annual list of companies that have taken actions to protect the environment as well as a list of companies that it finds are damaging the environment.
D) A community distributes "I voted" stickers to everyone who votes in an election, hoping that seeing them on voters will encourage others to vote.

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