Assume That Production from an Electric Utility Caused Acid Rain

question 10

Multiple Choice

Assume that production from an electric utility caused acid rain.If the government imposed a tax on the utility equal to the cost of the acid rain, the government's action would

• A)externalise the externality.
• B)result in a marginal social benefit greater than the marginal cost of the electricity.
• C)be an example of supply side economic policy.
• D)internalise the externality.

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Definitions:

Patterns of Interaction

Recurrent behaviors or actions that characterize the relationships and communications between individuals or groups.

Low-Income Women

Women whose earnings are below a certain level, making them financially vulnerable and often eligible for various support services.

Food Subsidies

Financial assistance provided by governments to lower the cost of food, making it more affordable for consumers.

Indifference

A lack of interest, concern, or sympathy towards others or a specific situation.