When a Tax on Output Is Imposed to Internalize the External

question 196

True/False

When a tax on output is imposed to internalize the external costs of pollution, the supply curve shifts down by the amount of the tax.

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Definitions:

Remittances

Money sent by workers to people in another country or region, typically family members, contributing to the receiving economy.

Emigrants

People who leave their country of origin to live permanently in another country.

Immigrant Workers

Immigrant workers are individuals who have moved from one country to another for the purpose of employment.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.