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    Principles of Economics Study Set 12
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    Exam 15: Public Goods, Externalities, and Government Behavior
  5. Question
    If Burning Coal Creates a Pollution Externality, the Government May
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If Burning Coal Creates a Pollution Externality, the Government May

Question 55

Question 55

Multiple Choice

If burning coal creates a pollution externality, the government may impose a


A) user fee on the polluter's marginal external benefit.
B) cost-benefit analysis on the polluter.
C) subsidy on coal.
D) tax on coal.
E) pollution right.

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