Which of the following statements is not correct?
A)Corrective taxes can be used to place a price on the right to pollute.
B)Corrective taxes allocate pollution to those producers who face the highest cost of reducing pollution.
C)Corrective taxes provide incentives to develop cleaner technologies.
D)Corrective taxes require the government to set a target level of pollution.

Question

Quizplus · Accepted Answer

Corrective taxes do not require the government to set a target level of pollution. They simply impose a tax on pollution, providing an incentive for producers to reduce their pollution levels, without specifying any desired level of pollution.

Which of the Following Statements Is Not Correct