One problem with the effectiveness of Pigovian taxes is:
A. knowing whether to impose it on the consumer or producer.
B. knowing what the value of the tax should be.
C. identifying those who are affected by the externality.
D. none of these are problems.
B. knowing what the value of the tax should be.
You might also like to view...
In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing faster than potential real GDP?
What will be an ideal response?
Assume that at the current level of output a firm's marginal cost and average variable cost of production are both decreasing
Based on this, we can conclude that the marginal product and average product of the firm's variable input(s) are both increasing. Indicate whether the statement is true or false
When the economy responds to a supply shock, there is ________ in the short run and ________ in the long run between inflation and unemployment
A) an inverse relationship; no trade-off B) no trade-off; an inverse relationship C) an inverse relationship; an inverse relationship D) no trade-off; no trade-off
According to the text, tradeoffs
A) lie at the heart of the executive's job. B) are unethical. C) involve giving up something in order to get more of it later. D) lie at the heart of costs and benefits. E) have nothing to do with successful management.