Solved

When Government Officials Have Very Little Information About Costs and Benefits

Question 57

Multiple Choice

When government officials have very little information about costs and benefits of the production of diesel fuel,a very high tax imposed on producers


A) will ensure optimal social efficiency.
B) will increase social efficiency but not necessarily be socially optimal.
C) will reduce social efficiency.
D) will leave social efficiency unchanged.
E) may or may not increase social efficiency.

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