Determine whether the following statements are TRUE OR FALSE.
Statement 1: A problem of applying Pigouvian taxes is that we can hardly know the exact level of externalities and hence the optimal tax to apply.
Statement 2: With perfect information, a Pigouvian tax would be identical to tradable allowances in effect

Question

Determine whether the following statements are TRUE OR FALSE.  
 Statement 1:  A problem of applying Pigouvian taxes is that we can hardly know the exact level of externalities and hence the optimal tax to apply. 
 Statement 2:  With perfect information, a Pigouvian tax would be identical to tradable allowances in effect

Answer

Statement 1: False; Statement 2: True

Answer

Statement 1: True; Statement 2: False

Answer

Statement 1: True; Statement 2: True

Answer

Statement 1: False; Statement 2: False

Crowdly

Determine whether the following statements are TRUE OR FALSE. Statement 1: A...

Want instant access to all verified answers on moodle.hku.hk?