Policymakers who wish to discourage businesses that pollute by taxing them:

Question

Quizplus · Accepted Answer

Policymakers who wish to discourage businesses that pollute by taxing them should place a tax on producers instead of the consumers in order to increase the burden on the sellers. However, it is important to note that some of the tax burden will be shared by consumers, as businesses may increase their prices to offset the cost of the tax. This is why option D is the most accurate choice. Option A is incorrect, as it assumes that businesses will pass on the entire tax burden to consumers, which is not always the case. Option B is also incorrect, as it suggests placing the tax burden on consumers, which is not an effective way to discourage polluting behavior among businesses. Option C is simply the opposite of option B, and suffers from the same problems.

Policymakers Who Wish to Discourage Businesses That Pollute by Taxing