Which of the Following Correctly Describes What a Pigouvian Subsidy

question 123

Multiple Choice

Which of the following correctly describes what a Pigouvian subsidy is?

• A) Subsidies received by the producers are called Pigouvian subsidies.
• B) Pigouvian subsidies are awarded to producers whose goods have external benefits.
• C) Taxes on producers creating negative externalities are called Pigouvian subsidies.
• D) Lower corporate tax rates are also known as Pigouvian subsidies.

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Definitions:

Parasympathetic

A branch of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.

American Sign Language (ASL)

A complete, natural language using hand movements, body language, and facial expressions for communication, primarily used by the deaf community in the United States and parts of Canada.

Left Hemisphere

The left side of the human brain, which is often associated with logical thinking, analytical processes, and language skills.

Right Hemisphere

The half of the brain responsible for spatial abilities, face recognition, and processing music and art.