Taxing the externality itself to correct a market:
A)is likely the best solution possible.
B)can be unattainable.
C)can be extremely difficult.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Taxing the externality is often seen as an ideal solution (A), but it can be unattainable (B) or extremely difficult (C) due to challenges in accurately measuring the externality and setting the correct tax level.

Taxing the Externality Itself to Correct a Market