In the Figure Above,if a Pollution Tax Is Imposed That

question 179

Multiple Choice

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then at the equilibrium,marginal social cost would ________ marginal benefit,and the quantity of chemical produced would be ________.

• A) exceed; above the efficient quantity
• B) exceed; below the efficient quantity
• C) be below; above the efficient quantity
• D) be below; below the efficient quantity
• E) equal; efficient

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Definitions:

Aldosterone

Aldosterone is a hormone produced by the adrenal glands that helps regulate blood pressure by balancing sodium and potassium levels in the blood.

Sodium

A chemical element with the symbol Na, an essential ion in the body's fluids that plays a key role in nerve impulse transmission and muscle contraction.

Ureters

The two tubes that transport urine from each kidney to the bladder in the urinary system.

Urethra

The tube that conducts urine from the bladder to the outside of the body and also serves as the duct for semen in males.