A Pigouvian tax is a tax designed to ________
A) induce consumers of a good to reduce the consumption of the good
B) induce producers generating negative externalities to reduce production
C) induce producers generating positive externalities to reduce production
D) induce producers to stop the production of a good
B
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Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?
a. No; the imports of trucks declined from 1980 to 2000. b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share. c. Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn. d. No clear conclusions can be drawn.
The price to attend a NBA basketball game in Chicago is $55 while the CPI in Chicago is 153. The CPI in Charlotte is 108 while the price to attend a NBA basketball game is $52
Which city offers a smaller real cost of attending a NBA basketball game?