A Local Cafe That Allowed Patrons to Smoke Was Recently

question 30

Multiple Choice

A local cafe that allowed patrons to smoke was recently forced to close its doors because it did not comply with local clean air standards.This decision provides an example of:

• A)direct regulation of an externality
• B)Pigovian taxes
• C)a Coase theorem solution to an externality
• D)unjustified discrimination against smokers

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Definitions:

Hot Chocolate

A warm beverage made from cocoa powder, milk or water, and sugar, often enjoyed for its comforting and sweet taste.

Cereal With Milk

A common breakfast food consisting of grains served in a bowl with milk.

Sleep Cycle

A sequence of physiological changes that the body goes through during sleep, typically lasting about 90 minutes and including stages of light sleep, deep sleep, and REM sleep.

Dreaming

The experience of imagined images, sounds, or other sensations during sleep, typically occurring in the REM stage.