Solved

If the Government Taxes a Good That Generates a Negative

Question 142

Multiple Choice

If the government taxes a good that generates a negative externality, then the government:


A) will generate tax revenue, but lower economic surplus.
B) can increase total economic surplus, but tax revenue will fall.
C) can increase total economic surplus and generate tax revenue.
D) will neither increase total economic surplus nor generate tax revenue.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents