Which of the Following Statements Is Correct

question 411

Multiple Choice

Which of the following statements is correct?

• A)Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost.
• B)Corrective taxes distort economic incentives.
• C)Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate.
• D)Both a and b are correct.

---

Definitions:

Test Participants

Individuals who take part in a test or experiment, often to provide data for research or product development.

Post-test Interviews

Interviews conducted after an experimental test to gather participants' feedback and understanding about the test.

Guided Evaluation

A structured method of assessing something with the assistance or direction of a guide or set of criteria.

Prototype

An early sample, model, or release of a product built to test a concept or process.