In order for a Pigovian tax to be effective, it must:
A. be imposed on the consumer.
B. be imposed on those affected by the externality.
C. be imposed on the producer.
D. None of these statements is true.
Answer: D
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The consumer faces a budget constraint because the market price of X is $3, the market price of Y is $3, and the consumer's budget is $90. In order for this consumer to choose the corner solution at point E, which of the following must occur?
A. price of Y must rise to $6. B. price of X must rise to $6. C. price of Y must rise to $9. D. price of X must rise to $9.
During the first phase of regulation in the United States (from 1887 to the Great Depression), the primary target of regulation was the:
A. labor unions. B. communication industry. C. food and drug industries. D. railroads.
What is a market? Must a market have a single physical location?
What will be an ideal response?
The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?
A) 20 percent B) 30 percent C) 55 percent D) 70 percent