1.1. Do you agree with the following statements? Why or why not? a. The benefits of Pigovian...
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1.1. Do you agree with the following statements? Why or why not?
a. “The benefits of Pigovian taxes as a way to reduce pollution have to be weighed against the deadweight losses that these taxes cause.”
b. “A negative production externality calls for a Pigovian tax on producers, whereas a negative consumption externality calls for a Pigovian tax on consumers.”
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