A tax can always be found and implemented that will correct a ...

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A tax can always be found and implemented that will correct a cause of an external effect.
 
  Indicate whether the statement is true or false

Question 2

Command-and-control means of regulation achieve their results more slowly but more reliably.
 
  Indicate whether the statement is true or false

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Answer to Question 1

F It may be difficult to tax the cause of an external effect, as in the case of highway congestion when a fuel tax may not have effect at the time congestion exists.

Answer to Question 2

F Command-and-control means of regulation can usually have effects more quickly than other means, but they are costly to administer and are not as good at motivating desirable decentralized actions.