A Pigovian Tax

question 19

Multiple Choice

A Pigovian tax:

• A)allocates pollution to those factories that face the highest cost of reducing it
• B)is a form of regulation
• C)works well for all types of externalities
• D)is deemed inferior to regulatory policy by most economists

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Definitions:

One-Way ANOVA

A statistical test used to determine if there are any statistically significant differences between the means of three or more independent (unrelated) groups.

Critical Number

A critical number is a value on the domain of a function where the function's derivative is zero or undefined, important in finding function maximums and minimums.

Randomized Block Design

A statistical experiment design that aims to reduce the effects of confounding variables by grouping similar experimental units into blocks before randomly applying treatments within each block.

Tukey's Method

A statistical technique for identifying outliers in data, comparing the spread of the data with the interquartile range (IQR) to find values that stand out excessively.