When Negative Externalities Exist in a Market,if the Producers Are

question 11

Multiple Choice

When negative externalities exist in a market,if the producers are forced to pay a Pigouvian tax then:

• A) those who interact in the market will lose surplus.
• B) those who interact in the market will gain surplus.
• C) producers will gain surplus.
• D) those who do not interact in the market but are affected by the externality will lose surplus.

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Definitions:

Fill-In-The-Blank Questions

A type of question or exercise where participants must insert the missing word or phrase to complete a statement correctly.

Episodic Memory

A category of long-term memory that involves the recollection of specific events, situations, and experiences.

Abraham Lincoln

Abraham Lincoln was the 16th President of the United States, known for leading the country during the Civil War and abolishing slavery.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, and numbers that is essential for the understanding and use of language.