When External Costs Are Present and the Government Imposes a Tax

question 282

Multiple Choice

When external costs are present and the government imposes a tax equal to the marginal external cost, then

• A) efficiency can be achieved.
• B) transaction costs will be high.
• C) the marginal benefit of the external cost will fall.
• D) property rights must have already been established.

---

Definitions:

Ambiguous Gestures

Actions or signals that are unclear or have multiple interpretations, often causing confusion in communication.

Diversity Training

Programs designed to improve interpersonal dynamics by recognizing, respecting, and valuing differences among individuals in the workplace.

Stereotypes

Oversimplified and generalized beliefs about a particular group of people or class of objects, often leading to prejudiced attitudes or actions.

Cross-Cultural Challenges

Cross-Cultural Challenges are difficulties that arise from differences in cultural backgrounds, beliefs, practices, and communication styles among individuals or teams.