If a Pollution Tax Imposed on a Firm Is Greater

question 28

Multiple Choice

If a pollution tax imposed on a firm is greater than its external cost

• A) the externality will be fully internalized.
• B) the social production cost will increase by the amount of the pollution tax.
• C) the pollution tax will be efficient.
• D) the firm will be producing too little from a society's point of view.

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Definitions:

Ethical Behavior

Conducting oneself according to morally sound principles in personal and professional settings.

Environmental Abuses

Refers to activities and actions that cause harm or damage to the natural environment, often due to human activities such as pollution, deforestation, and wildlife exploitation.

Direction of Attention

The focus or prioritization of cognitive resources on specific aspects of the environment or a task.

Persistence

Persistence is the quality of continuing steadfastly in spite of challenges, obstacles, or difficulty, demonstrating a commitment to achieving a particular goal or objective.