Assume That Production from an Electric Utility Caused Acid Rain

question 114

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) externalize 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) internalize the externality.

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Definitions:

Autism Spectrum Disorder

A developmental disorder characterized by challenges in social interaction, communication, and by restricted and repetitive behavior.

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, ranging from mild to severe.

Socioeconomic Status

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.

Savants

Individuals who demonstrate extraordinary abilities in a specific area, such as memory or music, often alongside developmental conditions like autism.