Pigou Taxes Are Unnecessary in the Presence of Transaction Costs

question 45

True/False

Pigou taxes are unnecessary in the presence of transaction costs.

---

Definitions:

Protection

Actions or measures taken to guard against harm, damage, or unwanted access, ensuring safety and security.

Encouragement

The act of giving support, confidence, or hope to someone, often motivating them to continue a course of action.

Humanism

A theory that stresses the potential of all humans, who have the same basic needs, regardless of culture, gender, or background.

Psychological

Pertaining to the mind or mental processes, emotional states, and behavior, often focusing on how these aspects influence individuals and their interactions with others.