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:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends paid to shareholders.

Dividend Increases

Instances where a company raises the amount of money it pays to its stockholders in dividends.

Market Rate

The prevailing interest rate or cost of borrowing in the financial markets at any given time.

Annual Dividend

A yearly payment made by a corporation to its shareholders, usually derived from profits.