题目
题目
单项选择题

Suppose the government mandates that businesses pay a pollution tax if they keep using an old technology that is pollution intensive. Does the size of government increase when measured by its annual expenditures?

选项
A.Yes but only if the government decides to use this tax revenue to subsidize adoption of a greener technology.
B.Yes but only if some businesses keep using that old technology.
C.Yes, it would have to.
D.No since government would keep this revenue as profit.
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标准答案
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思路分析
The question asks us to assess whether the size of government, as measured by annual expenditures, increases when a pollution tax is imposed on old, polluting technology. Option 1: 'Yes but only if the government decides to use this tax revenue to subsidize adoption of a greener technology.' This is a nuanced and accurate way to view government size. If the government collects a pollution tax (in......Login to view full explanation

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