Multiple Choice
Taxes on a producing firm's spillovers
A) are designed to make it easier for economists to measure spillovers.
B) will lead to a zero level of output.
C) are simply meant to force decision makers to consider the full costs of their actions.
D) are designed primarily as a way to raise money so that the government can compensate the victims of the externality.
Correct Answer:
Verified
Correct Answer:
Verified
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