Which of the following is true in relation to ECOTAХ?

1. Tax imposed on private parties to feel the social burden of their action.
2. Increased tax on petroleum
3. Are applied on business firms and commercial entities
4. Tax levied for creating positive externalities.

Question

Which of the following is true in relation to ECOTAХ?

1. Tax imposed on private parties to feel the social burden of their action.

2. Increased tax on petroleum

3. Are applied on business firms and commercial entities

4. Tax levied for creating positive externalities.

Quintessence Classes · Accepted Answer

The correct answer is 1 & 3. Analysis of Statements:Statement 1 is True: An Ecotax (or Environmental Tax) is designed to make private parties (individuals or companies) internalize the "external costs" of their actions. It ensures they pay for the social and environmental burden (pollution, resource depletion) they create.Statement 2 is False (Contextually): While taxes on petroleum can be a type of environmental tax, Statement 2 is too narrow and specific to define the general concept of Ecotax. Additionally, in many economic frameworks, petroleum taxes are often fiscal measures rather than purely "Ecotaxes" designed for behavioral change.Statement 3 is True: Ecotaxes are heavily applied to business firms and commercial entities to discourage industrial pollution, improper waste disposal, and carbon emissions.Statement 4 is False: Taxes are levied to mitigate negative externalities (like pollution). Activities that create positive externalities (like planting trees or R&D) are typically encouraged through subsidies, not taxes.

Answer

1 & 2

Answer

2 & 4

Answer

3  & 4

Which of the following is true in relation to ECOTAХ?

1. Tax imposed on private parties to feel the social burden of their action.
2. Increased tax on petroleum
3. Are applied on business firms and commercial entities
4. Tax levied for creating positive externalities.

Answer & Explanation

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JKPSC JKAS 2021 Prelims

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Which of the following is true in relation to ECOTAХ?1. Tax imposed on private parties to feel the social burden of their action. 2. Increased tax on petroleum 3. Are applied on business firms and commercial entities 4. Tax levied for creating positive externalities.

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JKPSC JKAS 2021 Prelims

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Which of the following is true in relation to ECOTAХ?

1. Tax imposed on private parties to feel the social burden of their action.
2. Increased tax on petroleum
3. Are applied on business firms and commercial entities
4. Tax levied for creating positive externalities.