When the Government Attempts to Reduce the Noise from Airplanes

question 105

Multiple Choice

When the government attempts to reduce the noise from airplanes by restricting the noise level from a jet engine to less than 50 decibels,it is using a(n) :

• A)environmental standard.
• B)emissions tax.
• C)Pigouvian tax.
• D)tradable emissions permit.

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Definitions:

Demand Curve

A chart that illustrates how the quantity of a product demanded by customers correlates with its price.

Normal Good

A product whose demand increases when people's incomes increase, and falls when incomes decrease, all else being equal.

Olives Price

The market price at which olives are bought and sold, which can vary based on factors such as quality, origin, and market demand.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.