Positive Externalities

question 2

Multiple Choice

Positive externalities:

• A)are similar to negative externalities in their ease of measuring marginal benefits.
• B)are likely to be solved with the use of a Pigouvian tax.
• C)are difficult to measure since marginal social benefits are hard to observe.
• D)result from greater than optimal production of a good.

Identify empirical reasoning’s significance in hypothesis testing and scientific inquiry.

Recognize the open and self-corrective nature of empirical reasoning within the scientific community.

Appreciate the role of empirical evidence in supporting or disconfirming hypotheses.

Understand the importance of independent verification, reproducibility, and peer review in empirical research.

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Definitions:

Medical Expense Deduction

A tax deduction that allows taxpayers to deduct unreimbursed medical and dental expenses that exceed a certain percentage of their adjusted gross income.

Deduction Limitation

Restrictions or caps placed on the amount that can be deducted from taxable income for various expenses.

AGI Threshold

The point at which certain tax benefits begin to be phased out or limited based on the taxpayer's adjusted gross income.

Personal Casualty Losses

Financial losses suffered from the sudden, unexpected, or unusual damage or loss of property due to events like natural disasters, that may be deductible under certain conditions.