Question

Use the following information to answer the question below. It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. Based on the preceding information, which of the following policies would be most appropriate for dealing with this problem?a. Levy a tax on the producers of paper products and use the tax revenues to clean up the river.b. Levy a tax on the producers of electricity and use the tax revenues to clean up the river.c. Levy a tax on the consumers of paper products and use the tax revenues to conduct research on new energy sources.d. Levy a tax on the consumers of electricity and use the tax revenues to subsidize the consumers of paper products.

Answer 1

Answer:

The answer is option a:" Levy a tax on the producers of paper products and use the tax revenues to clean up the river".

Explanation:

Since it has been established from the preceding statements that the Paper Mills located alongside the Layzee River discharge waste products into the river, then the mist appropriate step for the Hydro-Electric Power Station to take would be to convince the Paper Mills to pay tax for the power company in order for them to be able to make use of the tax revenues to do river cleaning before using it for dam or running the hydro-electric station.