Which of the Following Statements Is Most Correct

question 106

Multiple Choice

Which of the following statements is most correct?

• A)Pigovian taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost
• B)Pigovian taxes are less preferred than direct regulation because they typically reduce externalities at a higher cost
• C)Pigovian taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate
• D)Pigovian taxes are less preferred than direct regulation because they typically reduce externalities at a slower rate

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Definitions:

Triggers

Conditions or events that initiate a specific action or process.

Modify or Waive

The act of making changes to the conditions or requirements of an agreement, or choosing not to enforce them.

Immediate Repayment

The requirement to pay back borrowed funds or settle a debt without delay, often immediately after the funds are disbursed.

Financial Reporting Flexibility

The discretion allowed to managers in choosing how to report financial performance and position, within the bounds of accounting standards and principles.