Taxes that are enacted to mitigate the effects of negative externalities are sometimes called
A)control taxes.
B)command levies.
C)Pigovian taxes.
D)Marshallian taxes.

Question

Quizplus · Accepted Answer

Taxes that are enacted to mitigate the effects of negative externalities are known as Pigovian taxes, named after the economist Arthur Pigou. These taxes are intended to internalize the external costs of certain economic activities and provide an economic incentive for individuals and firms to reduce their negative impact on society.

Taxes That Are Enacted to Mitigate the Effects of Negative