Private and Competitive Markets Could Produce Efficient Levels of Pollution

question 75

Multiple Choice

Private and competitive markets could produce efficient levels of pollution if

• A)left alone by government regulators.
• B)regulated by government through direct controls.
• C)the appropriate tax per unit of pollution were administered and enforced.
• D)the producers were made aware of the pollution externality.
• E)the worst polluting firms were closed down.

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Definitions:

Conditioned Response

A response acquired through learning to a stimulus that was initially neutral, but has been paired with an unconditioned stimulus via conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In traditional conditioning, a stimulus that instinctively and automatically elicits a response without previous learning.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any prior learning or conditioning.