A Prescription Is a Judgment

question 1

Multiple Choice

A prescription is a judgment

• A) Ascribing some positive, negative, or neutral value to a thing
• B) Sanctioning an action to be right, wrong, or permissible
• C) Doing both of the above

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Definitions:

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, often leading to imbalances in decision making and potentially unfair outcomes.

Pollution Abatement

The reduction or elimination of pollutants released into the environment, often through regulatory policies or technology changes.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, aiming to correct an inefficient market outcome by increasing the cost to include the external costs.

CFCs

Chlorofluorocarbons; chemical compounds used in aerosol sprays and refrigerants that have been found to deplete the ozone layer.