If the Government Were to Impose a Fine of $1,000

question 7

Multiple Choice

If the government were to impose a fine of $1,000 for each unit of air-pollution released by a steel mill,the policy would be considered

• A) a subsidy.
• B) a regulation.
• C) a corrective tax.
• D) an application of the Coase theorem.

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Definitions:

Ohm's Law

A fundamental principle in electronics stating that the current through a conductor between two points is directly proportional to the voltage across the two points.

Volts

The unit of electric potential or electromotive force in the International System of Units (SI), symbolized as "V."

Short to Ground

An electrical fault where a positive wire unintentionally connects to the vehicle's frame or ground, potentially causing a circuit to malfunction.