A Tax May Be Used as a Corrective Device in the Case

question 164

Multiple Choice

A tax may be used as a corrective device in the case of a negative externality because it will __________ marginal private costs and __________ supply.

• A)increase; decrease
• B)increase; increase
• C)decrease; decrease
• D)decrease; increase

Comprehend the evolution of societal attitudes towards scientists and technological advancements.

Identify the main negative consequences of technological development.

Understand the role of technology in shaping history and its influence by various entities.

Recognize the portrayal of technology in media and theoretical implications.

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Definitions:

Capital Stock

The total amount of stock that a company is authorized to issue, representing ownership in the company.

Cumulative Preferred Stock

Preferred stock that, if the corporation doesn’t pay the specified percentage, has the unpaid amount (the dividend in arrears) carried over to the following year or years.

Capital Stock

The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.