Imposing a Pigouvian Tax on a Good, Creating a System

question 161

Multiple Choice

Imposing a Pigouvian tax on a good, creating a system of tradable licenses, and assigning property rights are methods to alleviate the problems associated with:

• A)private goods.
• B)positive externalities.
• C)public goods.
• D)common resources.

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Definitions:

Conflict

A situation where interests, needs, goals, or values of involved parties interfere with one another, often requiring management or resolution.

Risky Shift

The tendency for groups to make riskier decisions than individuals would, often due to diffusion of responsibility or pluralistic ignorance.

Elective Course

An elective course is a class chosen by a student from a number of optional subjects or courses in a curriculum, allowing customization of an educational program according to interests or career goals.

Conservative Shift

The tendency for groups to make less risky decisions than the average risk initially advocated by their individual members.