If a Tin of Sardines Creates a Noxious Odor for Non-Sardine-Eaters

question 244

Multiple Choice

If a tin of sardines creates a noxious odor for non-sardine-eaters equivalent to $1 per tin, the government could correct the odorous externality and achieve an efficient outcome by:

• A) taxing sardine tins at a rate of $1 per tin.
• B) subsidizing sardine tins at a rate of $1 per tin.
• C) capping total sardine consumption at 1000 tins per day.
• D) banning sardines.

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Definitions:

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.

Acute Stress Disorder

A condition characterized by the development of severe anxiety, dissociation, and other symptoms occurring within a month after exposure to a traumatic event.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms such as chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Panic Attacks

Sudden, intense surges of fear or discomfort, often with physical symptoms like rapid heartbeat, shortness of breath, or dizziness.