To Totally Internalize an Externality, a Government Can Levy a Tax

question 2

Multiple Choice

To totally internalize an externality, a government can levy a tax related only to the physical quantity of pollution if

• A) the economic damages associated with the pollution are different across different locations.
• B) the economic damages are too large to be determined.
• C) the economic damages associated with the pollution are the same across different locations.
• D) the economic damages are zero.

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Definitions:

"CMA"

Can refer to a Certified Management Accountant, a professional certification for accountants and financial professionals in business.

Certificate Of Waiver

A document that exempts the holder from having to comply with certain regulations or requirements, often in a healthcare or regulatory context.

Quality Assurance

The systematic process of verifying whether a product or service meets specified requirements.

Quality Control

The processes and measures taken to ensure the quality of a product or service meets specific standards.