Suppose a Particular Production Process Results in a Large Amount

question 161

Multiple Choice

Suppose a particular production process results in a large amount of pollution and the government decides to impose a tax to correct for this externality, such that the socially optimal output will be produced. The tax will have the effect of shifting the

• A)marginal private benefit curve to the right.
• B)marginal social benefit curve to the right.
• C)marginal private cost curve to the left.
• D)marginal social cost curve to the left.
• E)marginal private cost curve to the right.

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Definitions:

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to fulfill basic biological needs or drives.

Ostracism

The act of excluding or ignoring someone from a group or society, often used as a form of social punishment.

Competence

The ability and skill to effectively perform a task, job, or role to a high standard.

Autonomy

The state of being self-directed and independent in one's actions and decisions.