Which of the Following Statements Is Correct

question 127

Multiple Choice

Which of the following statements is correct?

• A)Taxes are more difficult to administer than regulations.
• B)Taxes provide incentives for firms to adopt new methods to reduce negative externalities.
• C)Command-and-control policies provide incentives for private decisionmakers to solve their problems on their own.
• D)Corrective taxes distort incentives.

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Definitions:

Production Cost

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead.

Expected Rate Of Return

A calculation representing the probable return on an investment, accounting for the risk of different investment options and the likelihood of various outcomes.

Marginal Cost

The extra expenditure required to produce one additional unit of a product or service.

Marginal Benefit

Marginal Benefit is the additional satisfaction or utility gained by consuming one more unit of a good or service.