Multiple Choice
Taxes on external costs are unlike other taxes because they
A) distort the incentives of the firms being taxed.
B) move the allocation of resources closer to the social optimum.
C) lead to a large deadweight loss.
D) raise revenue for the government.
Correct Answer:
Verified
Correct Answer:
Verified
Q85: The annual cost of collisions in the
Q86: A command-and-control policy causes firms to use
Q87: Recall the Application about how to wash
Q88: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5233/.jpg" alt=" Table 16.1
Q89: A pollution tax lowers the price of
Q91: If the government taxes a firm that
Q92: Under a command-and-control policy,there is no incentive
Q93: If we compare the effects of a
Q94: The optimum level of pollution abatement is
Q95: The idea behind the pollution tax equal