Multiple Choice
One problem with the effectiveness of Pigovian taxes is:
A) the tax does not directly compensate those who are affected by the externality.
B) knowing whether to impose it on the consumer or producer.
C) the tax is always used to benefit those who bear the externalities.
D) none of the above is a problem of Pigovian taxes.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: When a positive externality is present in
Q21: If the government were to restrict consumption
Q22: Tradable allowances are like taxes in that
Q23: The effect that an additional user of
Q24: The assumptions needed for the Coase theorem
Q26: Benefits that accrue directly to the decision
Q27: A sin tax is an example of:<br>A)
Q28: When a Pigouvian subsidy is imposed on
Q29: Private benefits are those benefits that accrue:<br>A)
Q30: A tax meant to counter the effect