To Reach an Economically Efficient Output Level,the Size of an Excise

question 8

Multiple Choice

To reach an economically efficient output level,the size of an excise tax imposed on a firm generating a negative externality should be

• A)the firm's marginal cost.
• B)the social marginal cost.
• C)the difference between the social marginal cost and the firm's marginal cost.
• D)the sum of the social marginal cost and the firm's marginal cost.

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Definitions:

Occipital Lobe

The backmost section of each half of the brain, mainly tasked with interpreting visual data.

Brain's Activity

The brain's activity encompasses the various neurological processes and functions carried out by the brain including thought, perception, emotion, and coordination.

Cognitive Psychology

A branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, or solving problems quickly and with minimal effort.