I got a 7 for my Economics HL Microeconomics Internal Assessment. The topic was related to Carbon Tax, Negative Externality of Production, Marginal Social Cost, and Marginal Private Cost.
Carbon is a byproduct of industrial activity that burns coal to generate the electricity needed to produce output. Various industrial activities create a negative externality of production, carbon emission. Negative externality of production produces an external cost to society when produced. Since carbon is a major pollutant, governments can impose a tax on carbon per unit, so called carbon tax, to decrease carbon emitted by fossil fuel burning firms and so decrease the cost to society. Carbon tax serves as an incentive for producers to reduce tax voluntarily, to pay the least tax possible. However, United States republicans’ attempt to use a carbon tax to reduce carbon emissions is yet flawed.
Marginal Social Cost (MSC) refers to cost to society for producing one more unit of good. In the case of negative externality of production…
- Total number of pages: 3 pages
- Topic: Carbon Tax, Negative Externality of Production, Marginal Social Cost, and Marginal Private Cost
- Subject: Economics
- The file is in PDF format.