In the Figure Above,if a Pollution Tax Is Imposed That

question 131

Multiple Choice

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then when the market is in equilibrium,the deadweight loss is ________ thousand per month.

• A)$250
• B)$125
• C)$150
• D)$50
• E)zero

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Definitions:

Preemptive Action

A strategic move where action is taken early, often militarily, to prevent an anticipated threat or attack by another.

Bush Administration

Refers to the presidency of George W. Bush, the 43rd President of the United States, from 2001 to 2009, marked by the September 11 attacks, the initiation of the Iraq and Afghanistan wars, and significant tax cuts.

Domestic Debate

Discussions or arguments relating to issues within a country, as opposed to international or foreign policies.

International Debate

A discussion or argument involving parties from different nations or international perspectives on global issues.