The Idea Behind the Pollution Tax Equal to the External

question 95

Multiple Choice

The idea behind the pollution tax equal to the external cost per unit of pollution is to

• A) increase the social benefit to be above the marginal cost.
• B) internalize the externality.
• C) allow the firm to evade external costs.
• D) drive polluting firms out of developed countries.

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Definitions:

Personality Traits

Enduring patterns of thoughts, feelings, and behaviors that distinguish individuals from one another, forming the basis of personality.

Biological Perspective

An approach in psychology focusing on the physical and biological bases of behavior.

Brain Chemistry

The complex interplay of neurotransmitters, hormones, and other chemicals in the brain, affecting mood, behavior, and cognitive function.

Evolutionary Psychology

Evolutionary psychology examines how evolutionary principles such as natural selection have shaped the development of human behavior and mental processes.