Imposing a Tax on an Activity That Generates an External

question 171

True/False

Imposing a tax on an activity that generates an external benefit will cause participants in the activity to increase the amount of the activity undertaken.

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Definitions:

Statistical Inference

The method of applying data analysis techniques to infer characteristics of a fundamental probability distribution.

Census

A complete enumeration of a population or a group at a point in time with respect to various characteristics.

Categorical Data

Data that can be divided into groups or categories that do not necessarily have a logical order.

Numeric

Pertaining to numbers; involving or constituting numbers.