Currently, the State of Washington charges $.494 per gallon on gasoline at the pump and the Federal Government charges $.184, for a combined per gallon tax of $.678. Do you think this tax is too high, too low, or just right? In answering this question, you must correctly use the following terms from the film: negative externality; free-rider problem; and tragedy of the commons. These terms must be integrated into your answer, and you must demonstrate that you understand the terms.

Terms from film:

Externalities are situations when there's an external costs or external benefits that accrue to other people or society as a whole. When other people are made worse off that's called a negative externality.

Free riders are people who benefit without paying.

The incentive to do what's best for you, rather than what's best for everyone is the root cause of something economists call the Tragedy of the Commons. This is the idea that common goods that everyone has access to are often misused and exploited. It explains the cause of most of our environmental problems like air pollution, deforestation, the killing of endangered species, and overfishing.