The Biggest Problem with Using a Tax as a Way

question 75

Multiple Choice

The biggest problem with using a tax as a way to solve an externality problem is that:

• A)the tax sometimes increases the external cost.
• B)damages must be estimated in financial terms to determine the correct level of the tax.
• C)the firm will pass the entire tax onto the consumer.
• D)the commerce clause forbids such taxes.

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Definitions:

Job Rotation

The practice of moving employees between different tasks or positions within an organization to increase versatility and reduce boredom.

Task Variety

The degree to which a job or role involves a wide range of different activities requiring various skills and knowledge.

Vertical Loading

Vertical loading is a management practice of delegating more authority and higher-level tasks to employees to enhance their skills and motivation.

Enlarge the Job

A method to enhance job satisfaction by increasing the variety and scope of tasks performed by an employee.