Taxes Can Yield the Efficient Level of Pollution If the Tax

question 277

Multiple Choice

Taxes can yield the efficient level of pollution if the tax is set equal to the

• A) marginal benefit of pollution.
• B) marginal external cost of the pollution.
• C) marginal social cost of the pollution.
• D) equilibrium price of the pollution.

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Definitions:

Inhibition

The psychological process that restrains or suppresses one's actions, emotions, or thoughts to conform to social norms or personal standards.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by episodes of psychosis involving delusions, hallucinations, and disordered thinking.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Executive Functioning

A set of cognitive processes that include working memory, flexible thinking, and self-control, crucial for planning, decision-making, and organizing.