To Correct for a Negative Externality, a Government Might Impose

question 97

Multiple Choice

To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if

• A) the administrative costs are high.
• B) the cost of ascertaining the actual economic costs are relatively small.
• C) the economic damages are zero.
• D) the economic damages associated with the pollution are different across different locations.

---

Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured for health assessments.

Stroke Volume

The amount of blood pumped out of the left ventricle of the heart with each heartbeat.

Lymphocytes

A subtype of white blood cells that are part of the immune system, playing a significant role in the body's defenses against disease.

Macrophages

Large white blood cells in the immune system that engulf and digest pathogens and dead cells, part of the body's defense mechanism.