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Author Question: Which of the following illustrates the principle of second best? (Read 63 times)

xroflmao

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Question 1

The presence of externalities favors ________ and the presence of other distortionary taxes favors ________.


◦ nonneutral taxes; nonneutral taxes
◦ neutral taxes; nonneutral taxes
◦ nonneutral taxes; neutral taxes
◦ neutral taxes; neutral taxes

Question 2

Which of the following illustrates the principle of second best?


◦ The government imposes taxes on cigarettes and the tax revenue collected is used to pay for health care.
◦ The government decides to impose taxes on all automobiles rather than imposing a tax only on luxury automobiles.
◦ The government imposes a tax on a meat processing plant that equals the cost of cleaning the lake damaged by the waste discharged into the lake by the meat processor.
◦ A tax imposed on land, because this tax distorts economic decisions less than taxes on other factors of production.


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Marked as best answer by xroflmao on Apr 19, 2019

SamMuagrove

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xroflmao

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SamMuagrove

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