What Is the Biggest Problem of Using Government Actions Such

question 164

Multiple Choice

What is the biggest problem of using government actions such as taxes and pollution charges to control external costs?

• A) insufficient legal power to enforce the controls
• B) obtaining enough data to determine how much the tax or pollution charge will be
• C) In some situations, there is no known way to control the external costs.
• D) political lobbying and voter disagreement
• E) The Coase theorem points out that taxes and pollution charges work only in the short run and not in the long run.

---

Definitions:

Dopamines

A type of neurotransmitter that plays a significant role in the brain's reward system and motor functions.

Acetylcholines

Naturally occurring neurotransmitters in the body that play a key role in transmitting nerve impulses across synapses.

Somatic Nervous System

A part of the peripheral nervous system that controls voluntary movements of the body.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, it conserves energy and relaxes the body after periods of stress.