Asked by Garrett Jones on Apr 24, 2024
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Automobile emissions generate pollution,have health costs for pedestrians,and cause discomfort to residents of a city.In this case:
A) too little of society's resources are being used to operate automobiles.
B) the externality can be internalized by imposing a specific tax on drivers.
C) there is an external benefit to society from operating automobiles.
D) the externality can be internalized by granting a specific subsidy to drivers.
Automobile Emissions
The pollutants released into the atmosphere by motor vehicles, including carbon monoxide, nitrogen oxides, and hydrocarbons.
Specific Tax
A fixed amount imposed by the government on a product, per unit of quantity.
External Benefit
A benefit that affects a party who did not choose to incur that benefit, typically referring to positive side effects of a transaction or activity on third parties.
- Learn the approaches by which government actions can secure the optimal diminishment of pollution in a budget-friendly fashion.
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Learning Objectives
- Learn the approaches by which government actions can secure the optimal diminishment of pollution in a budget-friendly fashion.
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