To Eliminate the Inefficiency Resulting from Pollution That Creates an External

question 291

Multiple Choice

To eliminate the inefficiency resulting from pollution that creates an external cost,the government can impose a pollution tax on producers that is equal to the

• A) MSB.
• B) MC.
• C) marginal external cost.
• D) MSC.
• E) price.

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Definitions:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Glocalization

The simultaneous homogenization of some aspects of life and the strengthening of some localdifferences under the impact ofglobalization

Neoliberal Globalization

A policy that promotes private control of industry, minimal government interference in the running of the economy, the removal of taxes, tariffs, and restrictive regulations that discourage the international buying and selling of goods and services, and the encouragement of foreign investment.

McDonaldization

A form of rationalization. Specifically, it refers to the spread of the principles of fast-food restaurants, such as efficiency, predictability, and calculability, to all spheres of life.