A corrective tax is also known as:
A)a command-and-control regulation.
B)a Coase tax.
C)a Pigovian tax.
D)a Smithian tax.

Question

Quizplus · Accepted Answer

A corrective tax is also known as a Pigovian tax as it is based on the economic principles developed by economist Arthur Pigou. This tax is intended to correct a market failure by building the cost of negative externalities, such as pollution, into the price of goods and services.

A Corrective Tax Is Also Known As