Question

Which of the following statements is not correct? Select one: Oa. An ideal corrective tax would equal the external cost from an activity with negative externalities. Ob. A corrective tax is less efficient than a regulation. Oc. Both regulation and corrective taxes can reduce pollution. Od. A corrective tax encourages firms to further reduce pollution whereas a regulation provides no incentive to reduce pollution below the target.

          Which of the following statements is not correct?
Select one:
Oa. An ideal corrective tax would equal the external cost from an activity with negative externalities.
Ob. A corrective tax is less efficient than a regulation.
Oc. Both regulation and corrective taxes can reduce pollution.
Od. A corrective tax encourages firms to further reduce pollution whereas a regulation provides no incentive
to reduce pollution below the target.

Which of the following statements is not correct?
Select one:
Oa. An ideal corrective tax would equal the external cost from an activity with negative externalities.
Ob. A corrective tax is less efficient than a regulation.
Oc. Both regulation and corrective taxes can reduce pollution.
Od. A corrective tax encourages firms to further reduce pollution whereas a regulation provides no incentive
to reduce pollution below the target.

Added by Diana F.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Caroline Maroutian

03/14/2024

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Step 1: The question asks which statement is not correct. Show more…

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Which of the following statements is not correct? Select one: Oa. An ideal corrective tax would equal the external cost from an activity with negative externalities. Ob. A corrective tax is less efficient than a regulation. Oc. Both regulation and corrective taxes can reduce pollution. Od. A corrective tax encourages firms to further reduce pollution whereas a regulation provides no incentive to reduce pollution below the target.