In the Case of Externalities,government Can Use Taxes and Subsidies

question 37

True/False

In the case of externalities,government can use taxes and subsidies to turn an inefficient outcome into an efficient outcome.

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Definitions:

Revaluation Method

An accounting technique used to adjust the carrying value of an asset to its current market value.

Disclosure of Balances

Involves the requirement in financial reporting to provide detailed information about the balances of different accounts on the balance sheet or within the financial statements.

Useful Life Estimates

Projections or assessments of the duration during which an asset is expected to be economically viable and productive for its intended purpose.

Revaluation Surplus

The increase in an asset's carrying amount as a result of a revaluation, recognized in equity.