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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 4PA

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Similar questions

The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the table show three complaints about command-and-control regulation. Fill in the table by stating briefly how each market-oriented tool addresses each of the three concerns.
Would environmentalists favor command-and-control policies as a way to reduce pollution? Why or why not?
From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not?
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.
Is zero pollution an optimal goal? Way or why not?
The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment: a. The cost of producing Zlurp is 150, and the competitive suppliers sell it at this price. (The supply curve is horizontal.) How many bottles will each Whovillian consume? What is each persons consumer surplus? b. Producing Zlurp creates pollution. Each bottle has an external cost of 1. Taking this additional cost into account, what is total surplus per person in the allocation you described in part (a)? c. Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by one bottle. What happens to Cindys welfare (her consumer surplus minus the cost of pollution she experiences)? How does Cindys decision affect total surplus in Whoville? d. MayorCrinch imposes a 1 tax on Zlurp. What is consumption per person now? Calculate consumer surplus, the external cost, government revenue, and total surplus per person. e. Based on your calculations, would you support the mayors policy? Why or why not?
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?
How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
Economists sometimes shock noneconomists by stating that they do not favor the complete elimination of pollution. Explain the rationale for this position.
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
Do market demand curves reflect positive externalities? Why or why not?
Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.