Pigovian Taxes Are Not Always Effective Because It Is Difficult

question 10

Multiple Choice

Pigovian taxes are not always effective because it is difficult to identify:

• A)whether the tax should be imposed on the consumer or the producer.
• B)what the amount of the tax should be.
• C)who is being affected by the externality.
• D)None of these are reasons why Pigovian taxes are not always effective.

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