Suppose That a Vehicle Is Invented Such That It Emits

question 98

Multiple Choice

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere.To achieve an efficient market outcome,the government must:

• A)allow other vehicles that emit pollutants into the atmosphere,as long as vehicle owners pay all the costs associated with their pollution.
• B)outlaw SUV and other vehicles that pollute the environment.
• C)be the sole producer of that vehicle.
• D)require all auto makers to produce the vehicles that produces zero emissions.

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Definitions:

File Jointly

The process by which a married couple combines their income and deductions to file a single tax return.

Adjusted Gross Income

Total income minus specific deductions, used to determine taxable income on an individual's tax return.

Medicare Withholding

The portion of an individual's income that is deducted for Medicare, which is a form of health insurance typically for individuals aged 65 and older.

FSA

A Flexible Spending Account, which is a special account used for setting aside pre-tax dollars for eligible healthcare and dependent care expenses.