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"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:________

User Annika
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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

User Piash
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