Multiple Choice
Correcting a market with an externality through taxation is _________ correcting it through a quota.
A) more efficient than
B) less efficient than
C) just as efficient as
D) Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
Correct Answer:
Verified
Correct Answer:
Verified
Q36: If people took external costs like pollution
Q37: When a negative externality is present in
Q38: When economists propose taxes as a way
Q39: The distribution of surplus gained from private
Q41: When a negative externality exists in a
Q42: Efficiency is reached by allocating resources to
Q43: The net increase to total surplus when
Q44: Markets fail to maximize total surplus when:<br>A)
Q45: External benefits are those that accrue:<br>A) directly
Q112: A carbon tax is an example of:<br>A)a