If the Government Forced External Cost Internalization with a Tax

question 71

Multiple Choice

If the government forced external cost internalization with a tax on all firms that emit pollution, then:

• A) the market would be socially inefficient because taxes create deadweight losses.
• B) the market price of these goods would fall.
• C) production would actually increase.
• D) deadweight loss to society would decrease.

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Definitions:

Dynamic Displays

Interactive or changing visual presentations that adjust content or format based on user actions or in response to data.

Data Displays

Various ways of presenting or visualizing data to highlight patterns, relationships, or trends effectively.

Horizontal Bars

Apparatus used in gymnastics consisting of a metal bar fixed at a certain height above the ground, enabling athletes to perform exercises.

Chronological Order

A method of arranging events or information in the sequence of their occurrence in time, from the earliest to the latest.