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:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Diagnosing Illnesses

The process of identifying a disease or condition from its signs and symptoms through various methods including physical examination, medical history, and diagnostic tests.

Research Study

A systematic investigation designed to develop or contribute to generalizable knowledge using scientific methods.

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Injuries that occur without the intent to harm, often resulting from accidents.