Consider a Market in Which There Is an External Cost

question 116

Multiple Choice

Consider a market in which there is an external cost. A tax can be used to arrive at the efficient market equilibrium because the tax will

• A) decrease supply of the good.
• B) increase supply of the good.
• C) decrease demand for the good.
• D) increase demand for the good.

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Definitions:

Cooperative Play

A stage of play where children play together, sharing ideas and toys, and working towards a common goal, demonstrating social skills and teamwork.

Role-Playing Games

Games in which players assume the roles of characters in a fictional setting, making decisions that affect the outcome of the game, often structured around storytelling.

Quid Pro Quo Harassment

A form of sexual harassment where job benefits, opportunities, or conditions are made contingent upon the submission to sexual advances or favors.

Gender-Neutral Toys

Toys designed without specific gender markers, allowing children to explore and play without conforming to traditional gender roles.