If Policymakers Use a Pollution Tax to Control Pollution, the Tax

question 68

Multiple Choice

If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set

• A)equal to the marginal external cost at the economically efficient level of pollution.
• B)equal to the marginal private cost of production at the economically efficient level of pollution.
• C)equal to the amount of the deadweight loss created in the absence of a pollution tax.
• D)at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product.

---

Definitions:

Cognitive-Behavior Therapist

A mental health professional specializing in cognitive-behavioral therapy, focused on changing negative thought patterns and behaviors.

Interpretations

The act or process of explaining the meaning of something, often by analyzing underlying reasons or causes.

Person-Centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes the importance of the individual's personal experience and the therapist's unconditional positive regard.

Psychotherapy

A treatment method for emotional and mental disorders which employs psychological techniques to encourage communication of conflicts and insight into problems.