Assume That Production from an Electric Utility Caused Acid Rain

question 155

Multiple Choice

Assume that production from an electric utility caused acid rain and that the government imposed a tax on the utility equal to the cost of the acid rain.This is an example of

• A)a transactions cost.
• B)a Pigovian tax.
• C)a Pigovian subsidy.
• D)the Coase Theorem.

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Definitions:

Consumer Protection Act

Legislation aimed at protecting consumers from unfair, deceptive, or fraudulent practices in the marketplace, ensuring their rights are safeguarded.

Arbitration

A form of alternative dispute resolution where a neutral third party, the arbitrator, makes a decision to resolve a dispute outside of court.

Enforcement of Judgment

Enforcement of Judgment refers to the legal processes and methods used to compel a judgment debtor to comply with or satisfy a judgment that has been awarded to a judgment creditor.

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.