Although the reciprocal nature of the problem suggest that the proceeds of a corrective tax not be paid to as compensation to those harmed,if compensation is paid to those harmed by externalities _____.
A) the payment should be made from general revenues to keep the corrective action separate from the compensatory part
B) the payment should be set equal to marginal external cost
C) the payment should be made in one lump sum to minimize incentives to create future problems
D) the payment should be double the amount of the corrective tax to justly compensate the victims
Correct Answer:
Verified
Q12: An optimal corrective tax should be placed
Q13: A change in regulations increases the size
Q14: A corrective tax can improve upon the
Q15: Internalizing a negative externality means _.
A)changing the
Q16: When there is no market for a
Q18: An externality is_.
A)an unintended by-product of market
Q19: Corrective taxes are often difficult to implement
Q20: The producers of externalities prefer _ to
Q21: When _,we are at the optimal amount
Q22: Marketable pollution rights _.
A)make producers pay for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents