3. Environmental Economics
Taxes Subsidies — Quiz
Test your understanding of taxes subsidies with 5 practice questions.
Practice Questions
Question 1
What does the term 'tax shifting' refer to in environmental fiscal policy?
Question 2
In environmental economics, what is the 'rebound effect'?
Question 3
If a city imposes a \$0.10 tax per plastic bag and initial use is 100×10^6 bags/year, with consumption falling by 40%, what is the annual tax revenue?
Question 4
In a deposit‐refund system charging \$0.10 per bottle, 1,000,000 bottles are sold and 85% are returned. What is the government’s net revenue?
Question 5
Which type of environmental subsidy provides payments based on measured environmental performance, such as verified emission reductions?