One Problem with the Effectiveness of Pigovian Taxes Is

question 5

Multiple Choice

One problem with the effectiveness of Pigovian taxes is:

• A)knowing what the value of the tax should be.
• B)knowing whether to impose it on the consumer or producer.
• C)identifying those who are affected by the externality.
• D)All of these are problems.

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Definitions:

Felony

A serious criminal offense that is usually punishable by imprisonment for more than one year or by death.

Capital Offense

A crime that is punishable by death under the legal system.

Model Penal Code

A text designed to stimulate and assist state governments in updating and standardizing their penal laws.

Maximum Penalty

The highest punishment or fine that can be imposed for a particular offense under the law.