CIMA Exam CIMAPRA17-BA1-1 Topic 3 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 105
Topic #: 3

All of the following are appropriate policies to deal with the problem of industries which cause pollution except which one?

ATaxes on the consumption of the product

BSubsidies to the producers

CThe auctioning of pollution permits

DLegal controls to limit pollution levels

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Suggested Answer: A

by Glennis at Jan 11, 2025, 02:53 PM

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I'm leaning towards A, taxes on the consumption of the product. Hitting the consumers where it hurts might be the best way to discourage pollution.

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2 days ago

Hmm, I think option B, subsidies to the producers, is the odd one out here. Seems counterintuitive to reward the polluters.

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11 days ago

I think the answer is B) Subsidies to the producers.

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