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Unformatted text preview: D. Schnelling Tax. E. Friedman Tax. Quiz: Question 3: According to Nechyba, what is the main advantage of vouchers (cap-and-trade) and pollution taxes, compared to Pigouvian taxes? A. Vouchers and pollution taxes give firms an incentive to search for pollution-abating technologies. B. Vouchers and pollution taxes require less change in government expenditure than Pigouvian taxes. C. Vouchers and pollution taxes are easier to design than Pigouvian taxes. Quiz:...
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- Fall '08
- Microeconomics, Pigovian tax, marginal cost curve