1. True or False g. Pollution arising from private automobile usage may be alleviated by a carbon tax on gasoline. h. Private provision of water and sewer service would result in a level of provision of service below the socially optimal level. i. Average cost pricing would result in an optimal level of provision of local services such as water and sewer.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 9SCQ: The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the...
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1. True or False
g. Pollution arising from private automobile usage may be alleviated by a carbon
tax on gasoline.
h. Private provision of water and sewer service would result in a level of provision
of service below the socially optimal level.
i. Average cost pricing would result in an optimal level of provision of local
services such as water and sewer.
Transcribed Image Text:1. True or False g. Pollution arising from private automobile usage may be alleviated by a carbon tax on gasoline. h. Private provision of water and sewer service would result in a level of provision of service below the socially optimal level. i. Average cost pricing would result in an optimal level of provision of local services such as water and sewer.
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