When Producers Operate in a Market Characterized by Negative Externalities,what

question 156

Multiple Choice

When producers operate in a market characterized by negative externalities,what will a tax do that forces them to internalize the externality

• A)It will give sellers an economic incentive to account for the external effects of their actions.
• B)It will have an offsetting effect that reduces the producers' private production costs.
• C)It will increase the amount of the commodity exchanged in market equilibrium.
• D)It will dictate to the producer how much is an acceptable level of the negative externality

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Definitions:

Prosopagnosia

A brain-based condition where the recognition of faces is impaired, commonly referred to as face blindness.

Subliminal Stimulation

The process of influencing an individual's mind below the threshold of conscious perception.

Context Effects

The influence of environmental factors on one's perception, cognition, or behavior in a given situation.

Sensory Adaptation

The method through which sensory detectors decrease in sensitivity towards unvarying or steady stimuli over a period.