Which of the following statements is not correct?
A)Patents help internalize the externalities associated with technological advances.
B)Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution.
C)Allowing firms to trade pollution permits will lower the total cost of reducing pollution.
D)A big impediment to implementing the Coase theorem in many cases is high transactions costs.

Question

Quizplus · Accepted Answer

Economists typically prefer corrective taxes to regulations because corrective taxes provide firms with a financial incentive to reduce pollution, while regulations may not provide the same level of incentive.

Which of the Following Statements Is Not Correct