Which of the Following Is Not an Advantage of Corrective

question 169

Multiple Choice

Which of the following is not an advantage of corrective taxes?

• A)They raise revenues for the government.
• B)They enhance economic efficiency.
• C)They subsidize the production of goods with positive externalities.
• D)They move the allocation of resources closer to the social optimum.

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Definitions:

Cash Outflow

The movement of money out of a business, typically as expenses or investments, resulting in a decrease in the company’s cash and cash equivalents.

Repay Principal

The process of paying back the original amount of money borrowed, not including interest, from a lender or creditor.

Paying Wages

The process of compensating employees for their labor, typically calculated by the hour, day, or based on output.

Cash Outflow

Money that is spent or transferred out of a business, reducing its cash balance.