The tax on gasoline is an example of
A) a consumption tax.
B) a corrective tax.
C) an income tax.
D) a command-and-control policy.

Question

Quizplus · Accepted Answer

The tax on gasoline is a corrective tax because it is intended to discourage excessive consumption of gasoline and reduce negative externalities associated with driving, such as air pollution and traffic congestion. It also provides an incentive for consumers to choose more fuel-efficient vehicles or alternative modes of transportation.

The Tax on Gasoline Is an Example of