To Correct for a Negative Externality, a Government Might Impose

question 97

Multiple Choice

To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if

• A) the administrative costs are high.
• B) the cost of ascertaining the actual economic costs are relatively small.
• C) the economic damages are zero.
• D) the economic damages associated with the pollution are different across different locations.

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Definitions:

Honesty

Honesty is the quality of being truthful, straightforward, and free from deceit or fraudulence in actions, expressions, or communications.

Gut-Level Communication

A form of deep, honest, and often nonverbal communication that stems from one's core feelings and beliefs.

Workplace

The location or environment where people are employed and perform tasks related to their jobs.

Overdisclosure

Sharing too much personal information or doing so inappropriately, which can lead to discomfort, breaches in privacy, or negative social repercussions.