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:

Comparative Performance Appraisal

An evaluation method where an individual's performance is directly compared to that of their peers to identify relative strengths and weaknesses.

Graphic Rating Scale

A method used in evaluations, consisting of a line or scale on which respondents indicate their opinions or performance levels.

Performance Outcomes

The results or achievements of an individual or organization's work, often measured against predefined goals or standards.

Forced Distribution

In performance appraisal forces a set percentage of persons into predetermined rating categories.