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:

Cannabis

A plant genus that includes species used for hemp production, as well as those that produce marijuana, known for its psychoactive properties.

Neurotransmitter System

A complex network of neurons communicating through chemical messengers known as neurotransmitters to modulate various physical and psychological functions.

Dopamine

A chemical messenger that plays a critical role in controlling body movement, focus, memory, motivation, and the reward system.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits or reduces activity of neurons.