Figure: Negative Externalities and Raising Pigs for Pork (Figure

question 86

Multiple Choice

Figure: Negative Externalities and Raising Pigs for Pork (Figure: Negative Externalities and Raising Pigs for Pork) Refer to the figure Negative Externalities and Raising Pigs for Pork.If the socially optimal production of pigs is 200, the government could achieve the socially optimal production by imposing a Pigouvian tax of:

• A)$400.
• B)$300.
• C)$250.
• D)$200.

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Definitions:

Democrats

A political party in the United States that generally supports liberal policies, emphasizing social equality, environmental protection, and government intervention in the economy to promote social welfare.

Senate Majority Leader

The chief spokesperson and strategist for the majority party in the U.S. Senate, responsible for legislative planning and party agenda.

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A senior member of the Senate who presides over the chamber in the absence of the Vice President, often based on seniority.

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An assembly or a chamber in a bicameral legislature, often the higher or upper house, responsible for making and passing laws.