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    Economics Principles and Policy Study Set 1
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    Exam 16: Externalities, the Environment, and Natural Resources
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    Taxes on Polluting Firms for Pollution Are Intended to
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Taxes on Polluting Firms for Pollution Are Intended to

Question 110

Question 110

Multiple Choice

Taxes on polluting firms for pollution are intended to


A) raise enough revenue to cut the deficit in half.
B) encourage firms to reduce charges by polluting less.
C) be efficient, i.e., result in no excess burden.
D) raise revenue for general spending needs.

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