Why are corrective taxes preferred over regulations to deal with pollution?Select one:O aCorrective taxes obtain faster results than regulations.cross outO b. Corrective taxes allow for an accurate monitoring of pollution levels.cross outOc Corrective taxes raise revenue and reduce pollution simultaneously,although efficiency is reduced.cross outO d. Corrective taxes reduce pollution at a lower cost to society thancross outregulations.

When the state's information about control costs is insufficient, economists have traditionally held…

Why are corrective taxes preferred over regulations to deal with pollution? Select one: O a. Corrective taxes obtain faster results than regulations. O b. Corrective taxes allow for an accurate monitoring of pollution levels. Oc Corrective taxes raise revenue and reduce pollution simultaneously, although efficiency is reduced. O d. Corrective taxes reduce pollution at a lower cost to society than regulations.

Why are corrective taxes preferred over regulations to deal with pollution? Select one: O a. Corrective taxes obtain faster results than regulations. O b. Corrective taxes allow for an accurate monitoring of pollution levels. Oc Corrective taxes raise revenue and reduce pollution simultaneously, although efficiency is reduced. O d. Corrective taxes reduce pollution at a lower cost to society than regulations.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 5PA

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Similar questions

In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations you choose. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the percentage reduction of gunk, and with the quantity of economic output on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between K and L, can you say which one is better and why? In the choice between K. and N, can you say which one is better, and why? If you had to guess, which choice would you think is move likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice L or M? Why?
Is zero pollution an optimal goal? Way or why not?
From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not?
Would environmentalists favor command-and-control policies as a way to reduce pollution? Why or why not?
Classify the following pollution-control policies as command-and-control or market incentive based. A state emissions tax on the quantity of carbon emitted by each firm. The federal government requires domestic auto companies to improve car emissions by 2020. The EPA sets national standards for water quality. A city sells permits to films that allow them to emit a specified quantity of pollution. The federal government pays fishermen to preserve salmon.
Consider the case of global environmental problems that spill across international borders as a prisoners dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries, A and B. Each country can cheese whether to protect the environment, at a cost of 10, or not to protect it, at a cost of zero. If one country decides to protect the environment, there is a benefit of 16, but the benefit is divided equally between the two countries. If both countries decide to protect the environment, there is a benefit of 32, which is divided equally between the two centuries. In Table 12.10, fill in the costs, benefits, and total payoffs to the countries of the following decisions. Explain why, without some international agreement, they are likely to end up with neither country acting to protect the environment.
Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.