Although the Reciprocal Nature of the Problem Suggest That the Proceeds

question 10

Multiple Choice

Although the reciprocal nature of the problem suggest that the proceeds of a corrective tax not be paid to as compensation to those harmed,if compensation is paid to those harmed by externalities _____.

• A)the payment should be made from general revenues to keep the corrective action separate from the compensatory part
• B)the payment should be set equal to marginal external cost
• C)the payment should be made in one lump sum to minimize incentives to create future problems
• D)the payment should be double the amount of the corrective tax to justly compensate the victims

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Definitions:

Frustration

The feeling of upset or annoyance, often due to inability to change or achieve something.

Income

Refers to the money an individual or business receives in exchange for providing a good or service or through investing capital.

Capital Intensive

Describes industries or businesses that require a large amount of capital investment in relation to their labor cost to produce goods and services.

Four Seasons Hotel

A luxury hotel chain known for its high-quality service and accommodations, catering to guests with upscale amenities.