If Policymakers Use a Pollution Tax to Control Pollution, the Tax

question 68

Multiple Choice

If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set

• A)equal to the marginal external cost at the economically efficient level of pollution.
• B)equal to the marginal private cost of production at the economically efficient level of pollution.
• C)equal to the amount of the deadweight loss created in the absence of a pollution tax.
• D)at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product.

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Definitions:

Quality Management

The aspect of management focused on maintaining and improving the quality of products, services, and processes through continuous feedback and strategic planning.

Scientific Management

A management theory developed by Frederick W. Taylor, emphasizing time studies, work studies, and the scientific method of measuring work performance and productivity.

Deming

Pertains to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in quality management and process improvement.

Commitment

Refers to an individual's dedication and loyalty to a cause, activity, or organization, often manifesting in persistence and effort.