This topic contains a solution. Click here to go to the answer

Author Question: Which of the following illustrates the principle of second best? (Read 56 times)

xroflmao

  • Hero Member
  • *****
  • Posts: 515

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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by xroflmao on Apr 19, 2019

SamMuagrove

  • Sr. Member
  • ****
  • Posts: 312
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.
Answer Preview
Only 39% of students answer this correctly



xroflmao

  • Hero Member
  • *****
  • Posts: 515

SamMuagrove

  • Sr. Member
  • ****
  • Posts: 312

 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

For a complete list of videos, visit our video library