In Order for a Pigovian Tax to Be Efficient, It

question 176

Multiple Choice

In order for a Pigovian tax to be efficient, it often requires detailed information about:

• A)the social and private costs of the good
• B)command and control
• C)governments and individuals
• D)production and technology

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Definitions:

Variable Overhead

Indirect production costs that change in relation to the level of production activity, such as utilities for a manufacturing facility.

Rate Variance

The difference between the actual rate and a predetermined or standard rate.

Direct Labor-Hours

The aggregate of direct labor hours required for manufacturing a good or rendering a service.

Variable Overhead

Indirect production costs that vary with the level of output, including supplies and utilities necessary for production but not directly tied to specific products.