An Observation That Involves Identifying Specific Behaviours That Are Observable

question 9

Multiple Choice

An observation that involves identifying specific behaviours that are observable and measurable is called a(n)

• A)informal observation.
• B)formal observation.
• C)unstructured observation.
• D)self-observation.

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Definitions:

Optimal Pigouvian Tax

A tax designed to correct the inefficiencies in a market that experiences externalities, set at a level that equates the marginal social cost of the externality with the marginal social benefit.

Socially Optimal

Pertains to a condition where resources are allocated in the most efficient manner from the perspective of society as a whole.

Pollution

The presence or introduction of harmful substances or contaminants into the natural environment, causing adverse effects.

Emissions Standard

Regulations that set limits on the amount of pollutants that can be emitted from sources like vehicles and factories.