Applying the Cost-Benefit Principle to the Issues of Large Class

question 123

Multiple Choice

Applying the cost-benefit principle to the issues of large class sizes and recent tuition hikes in Canadian universities and colleges will help to find

• A) a fair solution to the problems of such increases.
• B) the best solution to the problems of such increases.
• C) a plausible explanation of the problems of such increases.
• D) out who could best bear the full burden of such increases.
• E) out whether the government is doing their best to avert the problems of such increases.

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Definitions:

Corrective Taxes

Taxes implemented to correct the market outcomes that are not efficient by internalizing external costs, often used in environmental policy to address pollution.

Regulations

Standards and rules formulated by governmental or nongovernmental organizations to govern conduct within certain spheres of activity.

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.

Corrective Tax

A tax designed to induce private decision-makers to take account of the social costs that arise from a negative externality.