An Efficient Tax for a Product with Detrimental Externalities Would

question 75

Multiple Choice

An efficient tax for a product with detrimental externalities would equal

• A)marginal social cost minus marginal external cost.
• B)marginal private cost plus marginal external cost.
• C)marginal external cost minus marginal private cost.
• D)marginal social cost minus marginal private cost.

---

Definitions:

Align Left

A text formatting option that aligns text to the left margin of a document or text box, creating a straight line on the left side while the right side remains jagged.

Table Cell

The intersection of a row and column in a table that can hold text, numbers, or graphical objects.

Data Representation

Refers to the methods and formats used to encode and display data in a readable form, such as charts, graphs, or tables.

Chart Title

A descriptive heading or title provided for a chart, graph, or diagram to explain the nature or contents of what is being presented.