If Consumers of Common Resources Were Subject to a Tax

question 43

Multiple Choice

If consumers of common resources were subject to a tax equal to the external costs imposed due to the negative externality created, their demand curve would shift _______ and they would consume _______.

• A)upward; more
• B)downward; less
• C)downward; more
• D)upward; less

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Definitions:

Nicotine

An addictive chemical compound present in tobacco, known for its stimulating effect on the nervous system.

Metabolic Rate

The rate at which the body expends energy or burns calories, and it influences how quickly a person can gain or lose weight.

Stimulants

Substances that increase alertness, attention, and energy, by enhancing the activity of certain neurotransmitters in the brain.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body.