Do you agree with the following statements? Why or why not? a. The benefits of Pigovian taxes

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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. ‘When deciding whether to levy a Pigovian tax on consumers or producers, the government should be careful to levy the tax on the side of the market generating the externality.’

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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