Assume That Production from an Electric Utility Caused Acid Rain

question 184

Multiple Choice

Assume that production from an electric utility caused acid rain.If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would

• A)externalize the externality.
• B)result in a marginal social benefit greater than the marginal cost of the electricity.
• C)be an example of supply-side economic policy.
• D)internalize the externality.

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Definitions:

Fear

An emotional response to perceived or real threats.

Discriminations

The unfair or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Neurotic Behavior

Patterns of behavior characterized by excessive anxiety, insecurity, or obsession, often resulting in functional impairment or distress.

Circles and Ellipses

Shapes with distinct properties; a circle is a set of points equidistant from a center point, whereas an ellipse has two focal points and includes all points for which the sum of the distances to these foci is constant.