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:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are believed to share.

Abstract Thoughts

The ability to think about objects, principles, and ideas that are not physically present.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to massive changes in technology, society, and the global economy.

Postindustrial Society

A stage of society's development when the economy transitions from a manufacturing-based economy to a service-based economy, emphasizing the significance of information and technology.