In Order for Pollution Taxes to Be Effective in Eliminating

question 79

Multiple Choice

In order for pollution taxes to be effective in eliminating the deadweight loss resulting from pollution,the pollution tax must be set equal to the

• A) marginal private cost.
• B) marginal external cost.
• C) marginal social cost.
• D) marginal benefit of polluting.
• E) price of the good.

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Definitions:

Context

The circumstances, background, or environment in which an event occurs or a concept exists, crucial for understanding its significance and implications.

Basic Biological Need

Fundamental requirements essential for the survival and physical well-being of a living organism, such as food, water, and shelter.

Innately Social

A term describing organisms, especially humans, that are predisposed to live in communities and form social bonds.

Maladaptive

Behaviors or traits that are counterproductive to an individual's wellbeing or survival in their specific environment.