It is difficult to get the necessary information to apply corrective taxes in the real world,thus _____.
A)most government reluctantly apply to reduce negative externalities
B)use regulation to reduce negative externalities
C)use moral suasion to reduce negative externalities
D)most governments fail to do anything to reduce negative externalities

Question

Quizplus · Accepted Answer

Due to the difficulty in obtaining necessary information for corrective taxes, governments often resort to using regulations to address negative externalities instead of applying corrective taxes. This allows them to still address the externalities but without relying on precise information about the costs and benefits of different levels of pollution or other forms of externalities.

It Is Difficult to Get the Necessary Information to Apply