Which of the Following Are Problems Found When Using Taxes

Multiple Choice

Which of the following are problems found when using taxes to reduce pollution?
(i) Taxation will make products less competitive internationally.
(ii) Green taxes may have progressive redistributional effects.
(iii) Employment will fall due to reduced output in industries.
(iv) The socially efficient tax rate is difficult to identify.
(v) The tax will be relatively ineffective if the demand for the product is less elastic.

A) (iii) , (iv) and (v)
B) (i) and (v)
C) (ii) , (iv) and (v)
D) (i) and (ii)
E) (i) , (iii) and (iv)