It Is Difficult to Get the Necessary Information to Apply

question 9

Multiple Choice

It is difficult to get the necessary information to apply corrective taxes in the real world,thus _____.

• A)most government reluctantly apply to reduce negative externalities
• B)use regulation to reduce negative externalities
• C)use moral suasion to reduce negative externalities
• D)most governments fail to do anything to reduce negative externalities

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Definitions:

Direct Material

Raw materials that can be directly attributed to the production of specific goods or services.

Applied Overhead

The estimated overhead costs assigned to individual units of production, based on a predetermined rate.

Customized Product

A product specially designed and made according to the specifications and requirements of a particular customer.

Work in Process Account

An account used to track the costs associated with unfinished products during the manufacturing process, including labor, materials, and overhead.