What Would Be an Optimal Tax on Pollution

question 19

Multiple Choice

What would be an optimal tax on pollution

• A)one for which producers choose not to produce any pollution
• B)one for which producers internalize the cost of the pollution
• C)one for which a benevolent social planner is able to maximize production
• D)one for which the value to consumers at market equilibrium exceeds the cost of production (including tax)

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Definitions:

Environmentally-Friendly

Refers to practices, products, and behaviors that cause minimal harm to the environment.

Design Department

A division within an organization responsible for developing design solutions, usually related to products, graphics, architecture, or user interfaces.

Leadership Style

The method and strategy used for guiding, executing strategies, and inspiring individuals.

Ohio State Research

A series of studies conducted at Ohio State University that identified two critical dimensions of leadership behavior: consideration and initiating structure.