Taxes Can Yield the Efficient Level of Pollution If the Tax

question 277

Multiple Choice

Taxes can yield the efficient level of pollution if the tax is set equal to the

• A) marginal benefit of pollution.
• B) marginal external cost of the pollution.
• C) marginal social cost of the pollution.
• D) equilibrium price of the pollution.

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Definitions:

Anxiety

A psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components, which is often the result of stress and worry.

Depression

A common mental disorder characterized by persistent sadness, loss of interest in activities, and a range of physical and cognitive symptoms.

Obsessive-compulsive Personality Disorder

A mental disorder characterized by a preoccupation with orderliness, perfectionism, and control at the expense of flexibility, openness, and efficiency.

Obsessive-compulsive Disorder

A chronic disorder characterized by uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that the individual feels the urge to repeat.