When a Tax on Output Is Imposed to Internalise the External

question 65

True/False

When a tax on output is imposed to internalise the external costs of pollution, the supply curve shifts down by the amount of the tax.

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Definitions:

Interactive Imagery

A mental technique involving the active creation and manipulation of visual images in the mind to aid in learning or problem-solving.

Effective

Relating to the ability to successfully achieve a desired or intended result.

Physical Principles

Fundamental concepts or laws that govern the physical behavior of the universe, such as gravity, thermodynamics, and electromagnetism.

Mental Images

Visual representations in the mind that are not currently being perceived, often used in memory and problem-solving.