In the Case of a Negative Externality,in Order to Achieve

question 55

Multiple Choice

In the case of a negative externality,in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.

• A) tax; external costs
• B) tax; external benefits
• C) subsidy; external costs
• D) subsidy; external benefits
• E) tax; private costs

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Definitions:

Coalition

An alliance among individuals, groups, or nations, formed for a specific purpose or to achieve a common goal.

Veto Players

Individuals or entities with the power to reject decisions or proposals, significantly influencing the outcome of policymaking or negotiations.

Organizational Settings

The environmental and systemic context in which a company or institution operates.

Power

The ability or capacity to influence or control the behavior of others or the course of events.