If the Government Imposes a Tax for Each Unit of Pollution

question 13

Multiple Choice

If the government imposes a tax for each unit of pollution that a firm produces, the firm will

• A) ignore the tax and continue to produce the same amount of output.
• B) reduce emissions until the marginal cost of any further reduction in pollution is equal to the price of the firm's product.
• C) increase output such that the additional revenue can offset this additional tax payment.
• D) stop producing altogether.
• E) reduce emissions until the marginal cost of any further reduction in pollution is equal to or greater than the tax.

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Definitions:

U.S. Department of Health and Human Services

A federal agency tasked with protecting the health of all Americans and providing essential human services.

Self-Deliverance

A rational and voluntary act of taking one’s life; an alternative to the terms suicide and mercy killing.

Quality-Of-Life Philosophy

A belief system that emphasizes the importance of enhancing the well-being and happiness of individuals through their life circumstances.

Active Euthanasia

A direct action that causes death in accordance with the stated or implied wishes of the terminally ill patient. Such action can be voluntary (patient requested) or involuntary (not requested by the patient).