Question

"The effect of an excise tax on the producers of pollution-producing industries will be a cutback in production. If the tax was levied directly on the amount of pollution generated, the long-run cutbacks in production would be much smaller." This statement is most likely to be:________

Answer 1

Answer:An avenue of cutting down the production of pollution

Creation goods

Explanation: this is a SPECIFIC excise tax levy, because it is levied on the amount of pollution created so as to reduce the production of these products that poses a negative strain on the environment. It's a regulatory form of taking. Same tax is levied on cigarettes, alcoholic drinks E.T.C