If the Government Forced External Cost Internalization with a Tax

question 71

Multiple Choice

If the government forced external cost internalization with a tax on all firms that emit pollution, then:

• A) the market would be socially inefficient because taxes create deadweight losses.
• B) the market price of these goods would fall.
• C) production would actually increase.
• D) deadweight loss to society would decrease.

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Definitions:

French Gothic

An architectural style that evolved in France in the 12th century, characterized by pointed arches, ribbed vaults, and flying buttresses.

Salisbury Cathedral

A historic Anglican cathedral in Salisbury, England, known for having the tallest church spire in the UK and its early English Gothic architecture.

Pointed Arches

An architectural element characteristic of Gothic style, featuring arches with pointed apexes, which allowed for higher structures and larger windows.

Naumburg Master

A term used to describe an unidentified German sculptor or group of sculptors of the 13th century, famous for their work in the Naumburg Cathedral.