An Optimal Tax on Pollution Would Result in Which of the Following

question 424

Multiple Choice

An optimal tax on pollution would result in which of the following?

• A)Producers will choose not to produce any pollution.
• B)Producers will internalize the cost of the pollution.
• C)Producers will maximize production.
• D)The value to consumers at market equilibrium will exceed the social cost of production.

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Definitions:

Neurotoxin

A type of toxin that specifically targets neural tissues, potentially causing damage to the nervous system.

Mutagen

An agent, such as radiation or a chemical substance, that causes genetic mutation.

Carcinogen

is any substance, radionuclide, or radiation that promotes carcinogenesis, the formation of cancer, by altering cellular metabolism or damaging DNA directly in cells.

Stock Split

A corporate action that increases the number of a company's shares by issuing more shares to current shareholders, thus reducing the price per share.