Which of the Following Statements Is Correct

question 411

Multiple Choice

Which of the following statements is correct?

• A)Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost.
• B)Corrective taxes distort economic incentives.
• C)Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate.
• D)Both a and b are correct.

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Definitions:

Quasi-contract

A legal concept that the court applies to impose an obligation on one party to prevent unjust enrichment, even though there is no actual contract between the parties.

Implied Contract

A contract formed by actions, behaviors, or circumstances that suggest mutual agreement or consent, even without explicit verbal or written terms.

Hybrid Contracts

Agreements that involve elements of both goods and services, where the provision of services and the sale of goods are combined into one contract.

Predominates

To be the strongest or main element; to have greater importance or weight than other factors.