If the Government Does Not Know the Efficient Level of a Pigouvian

question 7

True/False

If the government does not know the efficient level of a Pigouvian tax to correct for a negative production externality, efficiency will still be enhanced so long as the government imposes a per-unit tax.

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Definitions:

Five-Question Sequence

The five-step process of overcoming objections in which facts, logic, and tact are used.

Overcoming Objections

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Objection

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