A Local Cafe That Allowed Patrons to Smoke Was Recently

question 30

Multiple Choice

A local cafe that allowed patrons to smoke was recently forced to close its doors because it did not comply with local clean air standards.This decision provides an example of:

• A)direct regulation of an externality
• B)Pigovian taxes
• C)a Coase theorem solution to an externality
• D)unjustified discrimination against smokers

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Definitions:

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli.

Statistically Significant

A term indicating that a result from data analysis is not likely to occur by chance, implying it is meaningful in the context of the hypothesis being tested.

Sample Groups

Selected subsets of a population used in research studies to represent the entire group from which they were chosen.

Chance Variation

Random fluctuations that affect data or experimental outcomes, not attributable to any specific cause.