Pigovian Taxes Are Not Always Effective Because

question 109

Multiple Choice

Pigovian taxes are not always effective because:

• A)they do not directly compensate those who are affected by the externality.
• B)it is difficult to identify whether the tax should be imposed on the consumer or the producer.
• C)they are only used to benefit those who bear the externalities.
• D)None of these are reasons why Pigovian taxes are not always effective.

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Definitions:

Respiratory Distress Syndrome (RDS)

A medical condition often seen in premature infants, characterized by difficulty breathing due to undeveloped lungs.

Mechanical Ventilation

Medical procedure that uses a machine to help a patient breathe when they are unable to do so on their own.

Alveolar Walls

Thin tissues that separate the alveoli (air sacs) in the lungs, enabling gas exchange during respiration.

Chronic Hypoxemia

A long-term medical condition characterized by consistently low levels of oxygen in the blood, which can lead to complications if untreated.