Which of the Following Is Not an Advantage of Corrective

question 169

Multiple Choice

Which of the following is not an advantage of corrective taxes?

• A)They raise revenues for the government.
• B)They enhance economic efficiency.
• C)They subsidize the production of goods with positive externalities.
• D)They move the allocation of resources closer to the social optimum.

Learn how to analyze and apply hedging strategies in real-world situations to manage financial risk.

Comprehend the concepts, definitions, and uses of various derivative instruments such as futures, options (calls and puts), swaps, forward contracts, and their roles in financial markets.

Understand the principles of financial risk management and the goal it serves in stabilizing a firm’s cash flows and costs.

Grasp the differences between various financial contracts (forwards, futures, options, swaps) and their unique characteristics.

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Definitions:

Blood Culture

A laboratory test designed to detect infections in the bloodstream by culturing a blood sample.

Spike in Temperature

A sudden and significant increase in temperature, either environmental or body temperature, over a short period.

Anterograde Amnesia

The inability to form new memories following the onset of an injury or disease, although long-term memories from before the event may remain intact.

Retrograde Amnesia

A loss of memory for events that occurred before a certain point in time, often due to brain injury or trauma.