Consider the following statements when answering this question: I. It is impossible to shift taxes from producers to consumers without hurting the latter.
II) Only polluters pay (through production taxes) for the environmental damage they cause.

A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.

Tax Shift

The process by which the economic burden of a tax is transferred from the entity legally responsible for it to another party, typically from sellers to buyers or vice versa.

Polluters Pay

The principle that those who produce pollution should bear the cost of managing it to prevent damage to human health or the environment.

Environmental Damage

The harm caused to the natural environment due to human activities or natural disasters.