A Negative Externality Exists and Government Wants to Impose a Tax

question 23

Multiple Choice

A negative externality exists and government wants to impose a tax in order to bring about an efficient outcome.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) external benefit.

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Definitions:

Castration

The removal of the testicles in male animals or humans, often resulting in sterility and decrease in specific hormones.

Penis

The male genital organ used for urination and, in humans, also for sexual reproduction, functioning as a conduit for sperm during sexual intercourse.

Rugged Individualism

A phrase that signifies a person's belief in self-reliance and independence, often from government aid or intervention.

Chinese Society

The social structure, cultural practices, and historical development of the people living in China, characterized by its long history, diverse cultures, and complex social systems.