A Pigovian Tax Is Intended To

question 81

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 statements are true.

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Definitions:

Biopsychosocial Approach

A comprehensive perspective that considers the complex interplay of biological (such as genetics and biochemistry), psychological (including mood, personality, and behavior), and social elements (like culture, family, socioeconomic status, and healthcare) as influencing the outcome of diseases.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.

Nature and Nurture

The debate over the relative contributions of genetic predispositions (nature) and environmental influences (nurture) to human behavior and traits.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a major classification of mental disorders used by mental health professionals in the U.S.