Who Loses Surplus When Consumers in a Market Are Forced

question 76

Multiple Choice

Who loses surplus when consumers in a market are forced to pay a Pigouvian tax for a negative externality?

• A) Consumers
• B) Producers
• C) Others affected by the externality
• D) Both producers and consumers lose surplus when negative externalities are internalized.

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Definitions:

Curative Therapies

Medical treatments that are intended to cure a disease or condition, often targeting the root cause of the illness rather than just alleviating symptoms.

Hospice Care

Specialized care designed to provide support to individuals in the final phase of a terminal illness, focusing on comfort and quality of life, not cure.

Barriers

Obstacles that impede progress, understanding, or achievement, either physical or abstract.

DNR

Stands for "Do Not Resuscitate," a legal order to not perform CPR or other lifesaving measures on a patient if they stop breathing or their heart stops beating.