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:

Case Study

An in-depth investigation of a single individual, group, event, or community, typically used in psychology to examine and illustrate broader principles or phenomena.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Aggregate Measurements

A type of measurement that combines data from multiple sources or individuals to provide a collective or summary measure.

Error Variance

Error variance refers to the portion of variability in a set of data that results from factors other than the independent variable, often attributed to random or uncontrolled variables.