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.

Understand how to construct a merchandise purchases budget and its relevance in budgeting.

Prepare basic budget statements, including the income statement, cash budget, and balance sheet.

Calculate direct labor and raw materials requirements for a production budget.

Understand the sales budget and its role in forecasting cash receipts.

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Definitions:

Variable Time Interval

A schedule in operant conditioning where reinforcement is provided after varying intervals of time.

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses.

Fixed Ratio Schedule

A reinforcement schedule in behavioral psychology where a response is reinforced only after a specified number of responses.

Variable Interval Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.