In Order to Achieve an Efficient Result a Pollution Tax

question 12

Multiple Choice

In order to achieve an efficient result a pollution tax must

• A) be equal to the external cost generated.
• B) not be passed through to the consumers of the produced good.
• C) be equal to the social cost of production.
• D) be shared equally by the producer and the consumer of the produced good.

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Definitions:

Arable Land

Land capable of being ploughed and used to grow crops, indicating a measure of a region’s ability to support agricultural activities.

Cash Crops

Agricultural products grown primarily for sale to return a profit, such as tobacco, cotton, and sugar, rather than for consumption by the farmer's family.

Grain Production

involves the farming of grains such as wheat, corn, and rice, which are staple foods for a large portion of the world’s population.

Body Servants

Enslaved or servant individuals who worked closely with their masters or mistresses, performing personal tasks such as dressing, bathing, and grooming; these roles often, but not exclusively, existed within the context of slavery.