When Producing a Good Creates Pollution, an External Cost, and the Government

question 104

Multiple Choice

When producing a good creates pollution, an external cost, and the government imposes a tax equal to the marginal external cost, then

• A) transaction costs will be high.
• B) the efficient amount of the good will be produced.
• C) the amount of output moves farther away from the efficient amount.
• D) property rights must have already been established.

---

Definitions:

Eye-Contact

The act of looking directly into another person's eyes, which can convey various messages or emotions depending on the context.

Empty Plate

Often symbolizes hunger or poverty, but in the context of discussions, it can represent opportunities or starting from scratch.

Visual Dominance Behaviour

A nonverbal communication pattern where individuals use eye contact or gaze to assert dominance or control in social interactions.

Lower-Status Listener

A listener perceived to have a lower hierarchical position or less power in a given social or professional context, affecting communication dynamics.