A Benefit of Taxes Over Regulation to Internalise Externalities Is

question 27

Multiple Choice

A benefit of taxes over regulation to internalise externalities is

• A) it is easier to choose the optimal amount of taxes than the optimal amount of regulation.
• B) regulations are more difficult to impose than taxes.
• C) taxes equate the social costs with the social benefits.
• D) taxes provide incentives to adopt new methods to reduce the externality.

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Definitions:

Company-Specific Human Capital

The unique skills, knowledge, and experience possessed by an individual that are particularly valuable to their employer and not easily transferable to other organizations.

Global Human Capital

The skills, knowledge, and experience possessed by individuals worldwide that can be used for economic benefits and business success on a global scale.

Regional Human Capital

The collective skills, knowledge, and experience possessed by an area's workforce, which contributes to its economic development.

Power Distance

The degree to which subordinates in an organization accept that power is distributed unequally.