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.

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Definitions:

Immaturity

The state of being not fully developed or grown, often referring to behavior, emotional state, or physical development.

Sudden Infant Death Syndrome (SIDS)

A sudden, unexplained death of a child less than one year of age, often during sleep.

Developmental Milestones

Key skills or activities, such as walking or talking, that mark significant progress in a child's growth.