When External Costs Are Present and the Government Imposes a Tax

question 282

Multiple Choice

When external costs are present and the government imposes a tax equal to the marginal external cost, then

• A) efficiency can be achieved.
• B) transaction costs will be high.
• C) the marginal benefit of the external cost will fall.
• D) property rights must have already been established.

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Definitions:

Exhaled Tidal Volume

The volume of air expelled from the lungs during a normal breath, a parameter often measured in respiratory assessments and ventilatory support to gauge lung health and function.

Spasmodic Coughing

A sudden, violent cough that comes in spasms, often indicative of respiratory conditions.

Vocalizations

Sounds produced to express or communicate emotions, thoughts, or desires, important in clinical assessments.

Tracheostomy Site

The surgically created opening in the neck leading directly to the trachea (windpipe) to aid breathing.