A Tax That Creates an Excess Burden May Nevertheless Improve

question 34

Multiple Choice

A tax that creates an excess burden may nevertheless improve efficiency if

• A)consumption of the good has been generating beneficial externalities.
• B)consumption of the good has been generating no externalities.
• C)consumption of the good has been generating detrimental externalities.
• D)the good has been supplied by a monopolist.

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Definitions:

Beta Particles

Electrons or positrons with high energy and velocity released by specific radioactive nuclei during their decay process.

Gamma Rays

High-energy electromagnetic radiation emitted from atomic nuclei during radioactive decay, with shorter wavelengths than X-rays.

Exchangeable Potassium

The portion of potassium available in the soil for plant uptake, crucial for plant growth and metabolism.

Radioactive Iodine-131

A radioactive isotope of iodine, used in medical diagnostics and treatments, especially for thyroid conditions.