Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

Which of the following is not a reason for levying a tax on producers according to the level of pollution created during the production process?

  • AFirms have a financial incentive to reduce pollution.
  • BIt is relatively hard to administer and monitor this tax scheme.
  • CSome firms cause less pollution than others.
  • DTaxes on pollution reduce negative production externalities.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI