Corrective taxes are typically advocated to correct for the effects of
A)positive externalities.
B)negative externalities.
C)patents.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Corrective taxes are specifically designed to address negative externalities, which are the costs imposed on third parties as a result of an economic activity. Positive externalities, such as the benefits enjoyed by third parties, are not typically addressed with corrective taxes. Patents are also not addressed with corrective taxes as they pertain to intellectual property rights.

Corrective Taxes Are Typically Advocated to Correct for the Effects