An Example of a Pigovian Tax Would Be a Tax

question 117

Multiple Choice

An example of a Pigovian tax would be a tax on:

• A) income.
• B) cigarettes.
• C) corporate capital gains.
• D) All of these are examples.

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Definitions:

Flexible Budget

A flexible budget adjusts costs and revenue levels according to varying activity levels, providing a more accurate performance assessment than a static budget.

Homeless

Individuals or families lacking a fixed, regular, and adequate nighttime residence.

Cost Formulas

Mathematical equations or models used to calculate the total cost of producing goods or services based on variable and fixed costs.

Activity Variances

Differences between planned activity levels and actual activity levels, used to measure the efficiency and performance of different business operations.