Which of the following statements is not correct?
A)Corrective taxes can be used to place a price on the right to pollute.
B)Correctives taxes differ from most other taxes in that corrective taxes do not cause deadweight losses.
C)Corrective taxes provide incentives to develop cleaner technologies.
D)Corrective taxes are unlike most other taxes because they raise revenue for the government.

Question

Quizplus · Accepted Answer

Corrective taxes are similar to other taxes in that they raise revenue for the government. The primary distinction is that they are designed to correct negative externalities, not that they don't raise revenue.

Which of the Following Statements Is Not Correct