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.............v 12,,, Hydroelectric power is electricity generated from the energy of running water, usually water falling over a dam. The Paper Factory is located along

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.............v

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12,,, Hydroelectric power is electricity generated from the energy of running water, usually water falling over a dam. The Paper Factory is located along the Lazy River. The operators of the factory are discharging waste products into the river. A hydroelectric generating plant is also located on the Lazy River downstream from the Paper Factory. A hydroelectric generating plant uses waterpower to produce electricity. This hydroelectric generating plant must clean up the river's water before it flows through their equipment. Which of the following policies would be most appropriate for dealing with this problem? (Note: Levy means to impose a tax. Or you might say, levy means to place a tax on an organization or individual.) A. Levy a tax on the PRODUCERS OF ELECTRICITY and use the tax revenues to clean up the river. B. Levy a tax on the PRODUCERS OF PAPER PRODUCTS and use the tax revenues to clean up the river. 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. 13.., Hydroelectric power is electricity generated from the energy of running water, usually water falling over a dam. The Paper Factory is located along the Lazy River. The operators of the factory are discharging waste products into the river. A hydroelectric generating plant is also located on the Lazy River downstream from the Paper Factory. A hydroelectric generating plant uses waterpower to produce electricity. This hydroelectric generating plant must clean up the river's water before it flows through their equipment. The waste discharged by the Paper Factory is an example of: A. Spillover benefit B. Public good C. Spillover cost D. The exclusion principle

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