Which of the Following Illustrates the Principle of Second Best

question 22

Multiple Choice

Which of the following illustrates the principle of second best?

• A) The government imposes taxes on gasoline, and the tax revenue collected is used to pay for road repair.
• B) The government decides to impose taxes on all grains, rather than imposing a tax only on wheat.
• C) The government imposes a tax on a paper manufacturer that equals the cost of cleaning the river damaged by the waste discharged into the river by the paper manufacturer.
• D) A tax imposed on land, because this tax distorts economic decisions less than taxes on other factors of production.

---

Definitions:

Accelerated Development

A strategy that speeds up the development process of products or projects to bring them to market faster than typically expected.

Market Share

The percentage of an industry's sales that a specific company controls.

Data Analytics

The process of examining data sets to draw conclusions about the information they contain, often involving the application of algorithms or statistical methods to identify patterns and trends.

Personalized Messaging

Marketing messages tailored to meet the specific needs or preferences of an individual customer or audience segment.