Question

Which of the following statements is correct? a. Taxes are more difficult to administer than regulations. b. Taxes provide incentives for firms to adopt new methods to reduce negative externalities. c. Command-and-control policies provide incentives for private decisionmakers to solve their problems on their own. d. Corrective taxes distort incentives.

Answer 1

b. Taxes provide incentives for firms to adopt new methods to reduce negative externalities.

Step-by-step explanation: