Which of the Following Statements Is Correct About a Market

question 386

Multiple Choice

Which of the following statements is correct about a market in which pollution is emitted?

• A)Both corrective taxes and pollution permits internalize the externality of pollution.
• B)Corrective taxes internalize the externality of pollution, but pollution permits do not internalize that externality.
• C)Corrective taxes fail to internalize the externality of pollution, but corrective taxes internalize that externality.
• D)Neither corrective taxes nor pollution permits internalize the externality of pollution.

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Definitions:

Thick Fluid

A liquid that has a high viscosity and does not flow easily.

Lungs

Organs found in the respiratory system primarily responsible for the exchange of oxygen and carbon dioxide between the air and blood.

Otitis Media

Inflammation of the middle ear.

Sense of Fullness

The feeling of being adequately full or satiated, often related to the consumption of food.