Which of the Following Statements About a Pigovian Tax Is

question 32

Multiple Choice

Which of the following statements about a Pigovian tax is true? If the amount of the tax is equal to the external cost, deadweight loss will be zero. The tax must be placed on producers. The tax moves the market quantity closer to the efficient quantity.

• A)I only
• B)II and III only
• C)I and III only
• D)I, II, and III

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