Sometimes the government deals with externalities by creating laws to regulate behavior instead of using taxes to correct the market failure. So, requiring auto manufacturers to install a device called a catalytic converter which removes some toxins from exhaust may be preferable to a gas tax that reduces driving levels. This route is often preferred because:
a. c and e.
b. it requires less technological development.
c. it doesn't penalize drivers of clean cars.
d. only car drivers pay for the externality.
e. the cost of the externality is unknown.
a
Economics
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An appreciation of the Japanese yen relative to the U.S. dollar will
a. increase aggregate demand in the United States. b. increase aggregate supply in the United States. c. increase aggregate demand in Japan. d. decrease aggregate supply in Japan.
Economics
Public saving is T - G, while private saving is Y - T - C
a. True b. False Indicate whether the statement is true or false
Economics