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:

Digital Information Fluency

The ability to find, evaluate, and use digital information effectively, critically, and ethically.

Organizational Problems

Issues or challenges within a company or organization that affect its efficiency, effectiveness, and productivity.

Information Flow

The movement and exchange of information within an organization or between entities.

Rumor Mill

The rumor mill refers to the informal transmission of unverified information or gossip, often spreading quickly through a community or organization.