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Governments tend to see taxing an action that produces a negative externality as

ID: 1126381 • Letter: G

Question

Governments tend to see taxing an action that produces a negative externality as:

the best solution possible, but often unattainable.

the second best solution possible and often the most attainable.

the best solution possible and often the most attainable.

the second best solution possible, but often unattainable.

A.

the best solution possible, but often unattainable.

B.

the second best solution possible and often the most attainable.

C.

the best solution possible and often the most attainable.

D.

the second best solution possible, but often unattainable.

Explanation / Answer

c> the best solution possible and often the most attainable

Reason

Taxing is easy and it is very much attainable. So, it is the best possible solution.

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