A Tax on a Polluting Industry

question 8

Multiple Choice

A tax on a polluting industry

• A) is not desirable because it reduces efficiency.
• B) leads to less output in this industry.
• C) causes more resources to be used in the polluting industry.
• D) shifts the marginal social benefit curve leftward.
• E) shifts the marginal social benefit curve rightward.

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Definitions:

Ethical Principles

Fundamental guidelines that influence moral decision making and conduct.

Deception

The act of misleading or deceiving someone to hide the truth.

Ethical Principles

Fundamental concepts or morals that guide behavior and decision-making based on notions of right and wrong.

Informed Consent

A process ensuring that a participant is fully aware of all aspects of a research project, including the risks and benefits, before agreeing to participate.