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A tax imposed on the quantity of pollution that a firm emits is a:
AMarketable permit
BProperty right
CCommand regulation
DPollution charge
Answer & Solution
Correct answer: D. Pollution charge
1. Market-oriented tools attach a price to pollution.
2. One market-oriented approach taxes emissions directly.
3. A pollution charge is a tax imposed on the quantity of pollution that a firm emits.
4. Permits and property rights are the other two approaches.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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