A Corrective Tax

question 34

Multiple Choice

A corrective tax

• A)can be used to internalize a negative externality.
• B)imposed on sellers shifts the supply curve to the left.
• C)imposed on buyers shifts the demand curve to the left.
• D)All of the above are correct.

---

Definitions:

Priority

The order in which rights, obligations, or claims are ranked or considered, often in a legal context.

Default

Failure to fulfill a duty or obligation, typically in the context of financial agreements such as failing to make loan payments.

Obtaining Control

The act of gaining the power or authority to manage or direct something or someone.

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender may seize if the borrower fails to repay the loan.