According to the text, if a policy is designed to move a production process toward efficiency when pollution exists, the best tax is a
A)lump sum tax on pollution.
B)progressive income tax.
C)proportional income tax.
D)sales tax.

Question

Quizplus · Accepted Answer

A lump sum tax on pollution is the best choice to move a production process toward efficiency when pollution exists because it directly taxes the pollution being emitted and creates an incentive for the company to reduce their pollution output. Other taxes like income or sales taxes do not directly address the pollution issue and may not create the same incentive for the company to reduce pollution.

According to the Text, If a Policy Is Designed to Move