One problem with the effectiveness of Pigovian taxes is:
A)knowing what the value of the tax should be.
B)knowing whether to impose it on the consumer or producer.
C)identifying those who are affected by the externality.
D)All of these are problems.

Question

Quizplus · Accepted Answer

Determining the correct value of a Pigovian tax is challenging because it requires accurately estimating the social cost of the externality.

One Problem with the Effectiveness of Pigovian Taxes Is