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The Government Has Adopted an Environmental Policy Based on Emissions

Question 100

Multiple Choice

The government has adopted an environmental policy based on emissions taxes if it:


A) transfers ownership of city air to a private firm that charges automobile drivers a profit-maximizing price, based in part on the pollution capacity of the atmosphere.
B) charges automobile drivers 10 cents for each unit of automobile emissions.
C) pays automobile drivers 10 cents for each 10 percent reduction in automobile emissions.
D) specifies the type of catalytic converter that must be used to reduce automobile emissions.

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