One problem with the effectiveness of Pigovian taxes is:
A. the tax is always used to benefit those who bear the externalities.
B. the tax does not directly compensate those who are affected by the externality.
C. knowing whether to impose it on the consumer or producer.
D. none of the above is a problem of Pigovian taxes.
Answer: B
You might also like to view...
The Condorcet paradox is a situation in which the preferences of each individual member of a group are ___________, and the collective preferences of the group are _________.
A. not transitive; not transitive B. transitive; not transitive C. transitive; transitive D. not transitive; transitive
For which of the following reasons is VAT considered a very important revenue generator for a government?
a. It is regressive in nature b. It targets only individuals in the high income class c. It cannot be avoided by individuals d. It boosts a country's export e. It lowers a country's import
A congested side street in your neighborhood is
a. excludable and rival in consumption. b. excludable and not rival in consumption. c. not excludable and rival in consumption. d. not excludable and not rival in consumption.
What are the two most important demand for money-shifters?
a. changes in price level and in NGDP b. changes in supply level and in NGDP c. changes in price level and in RGDP d. changes in supply level and in RGDP