Automobile Emissions Generate Pollution, Have Costs, and Cause Discomfort to Residents

question 19

Multiple Choice

Automobile emissions generate pollution, have costs, and cause discomfort to residents of a city. In this case:

• A) too little of society's resources is being used to operate automobiles.
• B) the externality can be internalized by imposing a specific tax on drivers.
• C) there is an external benefit to society from operating automobiles.
• D) the externality can be internalized by granting a specific subsidy to drivers.

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Definitions:

Qualitative

Pertaining to descriptions or distinctions based on some quality or characteristic rather than on some quantity or measured value.

Numerical Terms

Mathematical expressions or figures used to describe quantity, order, or relationships between amounts in data or calculations.

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Sunk Cost

A cost that has already been incurred and cannot be recovered.