If government officials set an emissions tax too high:
A)there will be too little pollution.
B)there will be too much pollution.
C)the marginal social cost of pollution will exceed the marginal social benefit of pollution.
D)pollution will be unabated.

Question

Quizplus · Accepted Answer

If the emissions tax is set too high, it will discourage firms from polluting, potentially leading to a situation where there is less pollution than the socially optimal level, resulting in too little pollution.

If Government Officials Set an Emissions Tax Too High