Suppose That at Present There Are No Laws to Restrict

question 159

Multiple Choice

Suppose that at present there are no laws to restrict pollution produced by the widget industry.Assume that the supply and demand curves are linear and that the market price of a widget is $20.If the government imposes a tax equal in value to the cost of the pollution,then firms would continue to produce widgets if

• A)the cost imposed by the pollution is less than $20 per widget produced.
• B)the private cost of producing a widget equals the cost of the pollution generated per widget.
• C)$20 minus the private cost of producing a widget is greater than the cost of the pollution generated per widget.
• D)$20 minus the private cost of producing a widget is less than the cost of the pollution generated per widget.

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles, and also mediates sensory information.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Central Nervous

Pertains to the part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Knee-Jerk Reflex

A rapid, automatic response to a stimulus, such as a physical tap, that causes the knee to jerk involuntarily.