In Order to Achieve an Efficient Result a Pollution Tax

question 12

Multiple Choice

In order to achieve an efficient result a pollution tax must

• A) be equal to the external cost generated.
• B) not be passed through to the consumers of the produced good.
• C) be equal to the social cost of production.
• D) be shared equally by the producer and the consumer of the produced good.

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Definitions:

Validly Completed

Refers to a logical argument that is structured correctly and follows the principles of logic, thus leading to a true conclusion if the premises are true.

Distributed

In logic, refers to a term in a categorical proposition that is used to assert something about every member of the category it represents.

Proposition

A formal statement or proposition in logic or mathematics, proposed for acceptance or rejection.

Enthymemes

A shortened form of syllogism which omits one of the premises, assuming it to be understood by the audience.