Correct question:
Correcting a market with an externality through taxation is _________ correcting it through a set output target from command and control.
Group of answer choices
A. less efficient than
B. as efficient as
C. either more or less depending on the elasticity of demand
D. more efficient than
Answer:
Correcting a market with an externality through taxation is (A) less effective than correcting it through a set output target from command and control.
<h3>Correcting a market with taxation:</h3>
- The government can discourage the consumption of harmful products by raising taxes on them.
- Cigarette and alcohol taxes, for example, are raised on a regular basis to discourage their consumption and limit their adverse impacts on unconnected third parties.
<h3>Command and control strategies:</h3>
- Command and control is a sort of environmental regulation that allows policymakers to expressly regulate both the amount and the procedure by which a company should maintain environmental quality.
- Correcting marketing is more effective than correcting manufacturing through taxation.
<h3>Reason -</h3>
As it is stated above Correcting marketing is more effective than correcting manufacturing through taxation.
Therefore, Correcting a market with an externality through taxation is (A) less effective than correcting it through a set output target from command and control.
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Answer: C. high returns
Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.
