The Following Table Shows the Costs and Benefit of Producing

question 72

Multiple Choice

The following table shows the costs and benefit of producing a commodity. Table 13.1
In Table 13.1, what level of tax per unit would be appropriate to internalize the externality?

• A)$4
• B)$6
• C)$1
• D)$8
• E)$2

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Definitions:

Lateral Spinothalamic Tract

A pathway in the spinal cord that carries pain and temperature sensations to the brain.

Rubrospinal Tract

A neural pathway in the central nervous system that originates in the red nucleus of the midbrain and primarily facilitates the transmission of motor signals to the body, influencing voluntary movements.

Lateral Corticospinal Tract

A key neural pathway located in the spinal cord, responsible for transmitting motor signals from the brain to muscles for voluntary movement.

Tectospinal Tract

A neural pathway involved in reflex movements of the head in response to visual and auditory stimuli.