A Pigovian Tax Is Intended To

question 21

Multiple Choice

A Pigovian tax is intended to:

• A)counter the effect of a negative externality.
• B)decrease efficiency in a market.
• C)decrease total surplus in a market.
• D)All of these are true.

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Definitions:

Regression

A return to earlier stages of development or behavior in response to stress or trauma.

Freud

Sigmund Freud, an Austrian neurologist, pioneered psychoanalysis, which is a therapeutic approach for addressing mental disorders through conversations between a psychoanalyst and their patient.

Ego

A psychoanalytic term referring to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate gratification.