Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality.
B) externalize the externality.
C) result in a marginal social benefit greater than the marginal cost of the electricity.
D) be an example of supply-side economic policy.
A
Economics
You might also like to view...
A change that increases real money demand relative to the real money supply causes
A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) the IS curve to shift down and to the left. D) the IS curve to shift up and to the right.
Economics
Which of the following might increase the supply curve of labor?
a. Elimination of discrimination against blacks. b. Elimination of discrimination against females. c. Easing licensing requirements. d. All of these.
Economics