If a Corrective Tax on Gasoline Results in the Efficient

question 32

Multiple Choice

If a corrective tax on gasoline results in the efficient output of gasoline by internalizing negative externalities associated with pollution:

• A) pollution from gasoline will increase because people are also harmed by the tax.
• B) there will be no effect on pollution from gasoline because the tax is paid by the supplier.
• C) pollution from gasoline will be zero because environmental cleanliness is priceless.
• D) the tax will generate enough revenue to compensate society for the damages resulting from the pollution that still occurs.

Comprehend the necessity to determine the purpose of communication.

Recognize the importance of a "you attitude" in messages to foster effective communication.

Understand different channels of communication and factors influencing channel choice.

Comprehend the impact of communication channel richness and ambiguity on channel choice.

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Definitions:

Good

A tangible item or service that can be bought, sold, or traded.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.

Tax

A necessary economic duty or another sort of imposition exacted from a taxpayer by a governmental agency to allocate funds for government activities and multiple public financial needs.

Good

A tangible item that satisfies some human want or need, which can be transferred from the producer to a buyer.