jabhatta2
If you could quickly elaborate why (i), (iii) and (iv) are not plausible scenarios when thinking of (A) -- that would be great..
We're talking about requiring household appliances to be broken down for salvage
when discarded. Who's doing the discarding,
jabhatta2? JD. When? At the end of the appliance's life.
Quote:
To cover the cost of salvage, the government is planning to charge a fee, which would be imposed when the appliance is first sold.
We're looking at answer choice (A)
Quote:
(A) Increasing the cost of disposing of an appliance properly increases the incentive to dispose of it improperly.
What does "cost of disposing of an appliance properly" mean? Well, when JD discards his appliance (properly or improperly), it doesn't cost him anything. If the government proceeds with the plan to impose a fee when the appliance is first sold, JD still won't have to pay anything when he is ready to dispose of the appliance properly (he already covered the cost of salvage, when he purchased the appliance). So, what is answer choice (A) talking about when it says "Increasing the cost of disposing of an appliance properly?" Well,
the author argued in favour of imposing the fee at the time of salvage. If the government follows the author's advice, who will have to pay that fee?
jabhatta2
This increase in the cost of disposing of an appliance properly is borne either by
(i) JD at the time of purchase
But, the fee is to be imposed at the time of salvage.
jabhatta2
But, the fee is to be imposed at the time of salvage.
jabhatta2
(iv) Government itself (Increased taxes)
But, the government is the one doing the increasing.