One Problem with the Effectiveness of Pigovian Taxes Is

question 25

Multiple Choice

One problem with the effectiveness of Pigovian taxes is:

• A) the tax does not directly compensate those who are affected by the externality.
• B) knowing whether to impose it on the consumer or producer.
• C) the tax is always used to benefit those who bear the externalities.
• D) none of the above is a problem of Pigovian taxes.

---

Definitions:

Knowledge Dissemination

The process of spreading and sharing knowledge within an organization or to the broader public.

First-mover Strategy

A business strategy where a company is the first to enter a particular market or industry, gaining a competitive advantage.

Profitable Market

A market segment that generates more revenue than the expenses incurred in capturing and servicing it.

Strategic Decisions

High-level choices made by top management that set the direction and overall goals for an organization, affecting its long-term sustainability and success.