If Policymakers Use a Pollution Tax to Control Pollution, the Tax

question 68

Multiple Choice

If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set

• A)equal to the marginal external cost at the economically efficient level of pollution.
• B)equal to the marginal private cost of production at the economically efficient level of pollution.
• C)equal to the amount of the deadweight loss created in the absence of a pollution tax.
• D)at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product.

---

Definitions:

Escape Response

A behavioral response to an aversive event that is reinforced by the termination of the aversive event.

Punishment

The introduction of a consequence in response to a behavior with the intent to decrease the likelihood of that behavior occurring in the future.

Suppressive Influence

The impact or effect that reduces, inhibits, or diminishes a particular response, activity, or expression.

Mowrer

A psychologist known for his two-factor theory of avoidance learning, which combines classical and operant conditioning theories to explain how anxiety and phobias are learned and maintained.