Pigouvian Taxes

question 97

Multiple Choice

Pigouvian taxes:

• A)tax the profits of polluting firms.
• B)are designed to reduce external costs.
• C)are essentially the same as emissions standards.
• D)are tradable emissions permits.

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Definitions:

Random Variable

A variable defined by the numerical outcomes possible from random occurrences.

Random Variable

A variable whose values are outcomes of a random phenomenon, typically quantifying aspects of occurrences that are subject to random variations.

Exchange Rate

The value of one currency for the purpose of converting it into another currency.

Verb

A word used to describe an action, state, or occurrence, and forming the main part of the predicate of a sentence.