The nice thing about a pollution tax is that it
A) eliminates pollution
B) forces cleanup to occur
C) is imposed only on the market with the externality
D) creates new property rights
E) creates positive externalities to compenstate for negative externalities

Question

Quizplus · Accepted Answer

A pollution tax is specifically targeted at markets or activities where the externality (in this case, pollution) occurs, aiming to internalize the external costs.

The Nice Thing About a Pollution Tax Is That It