If Markets Are Perfectly Competitive and Production of a Good

question 80

Multiple Choice

If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on that good will:

• A) increase both the price of that good and pollution.
• B) reduce the price of that good and increase pollution.
• C) reduce both the price of that good and pollution.
• D) increase the price of that good and reduce pollution.

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Definitions:

Lose

To be unsuccessful in retaining possession or winning; the opposite of winning or finding.

Vietnam War

A prolonged conflict (1955-1975) between Communist forces in North Vietnam and the Republic of Vietnam in the South, along with its principal ally, the United States.

Peace With Honor

A term often used to describe the goal of achieving a peaceful resolution to a conflict while maintaining the dignity and respect of all parties involved.

Civil Rights Organization

An organization that advocates for the rights and freedoms guaranteed to every person by law, often focusing on ending discrimination and promoting equality in society.