A Tax on Polluting Firms

question 96

Multiple Choice

A tax on polluting firms

• A)would shift the LRAC curve upward.
• B)would shift the LRAC curve downward.
• C)would have the same impact on the firm as a subsidy.
• D)tends to have the perverse effect of increasing pollution.

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Definitions:

Task Goals

The specific objectives or targets that an individual or team aims to achieve within a task.

Expectancy Theory of Motivation

A theory suggesting that an individual's motivation is based on their expected outcome of specific behaviors and the value they place on those outcomes.

Valence

The degree of attractiveness or aversiveness of a particular event, object, or situation, often influencing an individual's motivation levels.

Instrumentality

The belief that a certain performance level is connected to achieving a desired outcome.