Assume That Production from an Electric Utility Caused Acid Rain

question 32

Multiple Choice

Assume that production from an electric utility caused acid rain and that the government imposed a tax on the utility equal to the cost of the acid rain. This is an example of

• A) a transaction cost.
• B) a Pigovian tax.
• C) a Pigovian subsidy.
• D) the Coase Theorem.

---

Definitions:

Substrate-level Phosphorylation

A metabolic process where ATP is produced by the direct transfer of a phosphate group to ADP from another phosphorylated compound.

Oxidative Phosphorylation

A metabolic pathway that uses energy released by the oxidation of nutrients to produce ATP, it takes place in the mitochondria.

Phosphofructokinase (PFK)

An important enzyme in the glycolytic pathway, regulating the rate of glucose breakdown by converting fructose-6-phosphate into fructose-1,6-bisphosphate.

Glucose-6-phosphate

A glucose sugar phosphorylated at the 6th carbon, playing a critical role in energy metabolism and the glycogen storage pathway.