A Tax Equal to the External Cost on Firms That

question 25

Multiple Choice

A tax equal to the external cost on firms that emit pollutants would:

• A)​provide firms with the incentive to increase the level of activity creating the pollution.
• B)​provide firms with the incentive to decrease the level of activity creating the pollution.
• C)​provide firms with little incentive to search for less environmentally damaging production methods.
• D)​not reduce pollution levels at all.

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Definitions:

Single Protein

A molecule composed of amino acids that performs a unique and specific function within the cell or organism.

Transcription Factors

Proteins involved in the process of converting, or transcribing, DNA into RNA, playing crucial roles in regulating gene expression.

Gene Expression

The process by which genetic instructions are used to synthesize gene products (proteins or nucleic acids), influencing an organism's structure and functions.

Transcription Factor

A protein that regulates the transcription of genes by binding to specific DNA sequences, thus controlling the flow of genetic information.