In most cases,taxation is more likely to be inefficient than regulation because taxation corrects for only external costs at a higher overall cost to society.

Question

Quizplus · Accepted Answer

Taxation can be an efficient means of correcting for external costs by internalizing them, making the market reflect the true cost of activities. Regulation, while necessary in some cases, can be more rigid and less adaptable to changing economic conditions, potentially leading to inefficiencies.

In Most Cases,taxation Is More Likely to Be Inefficient Than