If a Tax Is Placed on the Output of Perfectly

question 48

Multiple Choice

If a tax is placed on the output of perfectly competitive firm that imposes external costs on society,the firm's marginal cost curve will shift ________ and the market supply curve will shift to the ________.

• A) down; left
• B) down; right
• C) up; right
• D) up; left

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Definitions:

Self-actualizing

The process of realizing one's full potential, as per Abraham Maslow's hierarchy of needs, emphasizing creativity, growth, and personal development.

Maslow

An American psychologist who created the hierarchy of needs, a theory in psychology concerning human motivation based on prioritized needs.

Spontaneous

Occurring without apparent external cause; impromptu or unplanned.

Reproductive Payoffs

Benefits or advantages obtained through reproducing, often in the context of evolutionary biology, referring to the success of passing genes to the next generation.