Solved

A Difficulty with Using a Uniform Per-Unit Tax to Address

Question 55

Multiple Choice

A difficulty with using a uniform per-unit tax to address a negative externality is that


A) the tax will reduce output.
B) the tax will increase price.
C) the social cost of pollution might vary across geographic regions.
D) the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions