A Negative Externality Exists and Government Wants to Impose a Tax

question 23

Multiple Choice

A negative externality exists and government wants to impose a tax in order to bring about an efficient outcome.To accomplish its objective,government must set the tax equal to marginal

• A) private cost.
• B) social benefit.
• C) external cost.
• D) social cost.
• E) external benefit.

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Definitions:

Major Health Problem

A significant or severe health condition that impacts an individual's daily life and may require extensive treatment or care.

Number Of Hassles

The quantity of minor irritations or annoyances that an individual encounters in daily life.

Stress

A psychological and physical response to external pressures or threats, which can disrupt an individual's mental or physical well-being.

SRRS

The Social Readjustment Rating Scale, a scale designed to measure the stress load one experiences from various life events.