A Negative Externality Exists and Government Wants to Impose a Per-Unit

question 68

Multiple Choice

A negative externality exists and government wants to impose a per-unit tax in order to bring about the socially optimal output. To accomplish its objective, government must set the tax equal to marginal

• A)private cost.
• B)social benefit.
• C)external cost.
• D)social cost.
• E)private benefit.

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Definitions:

Self-Worth

A person's own perception of their self-worth or personal value.

Belongingness

The human emotional need to be an accepted member of a group, which is fundamental to feelings of social connection and bonding.

Self-Esteem

The subjective evaluation of one's worth or the degree to which individuals value themselves positively or negatively.

Positive Mood

A state of emotional well-being characterized by feelings of happiness, contentment, and satisfaction.