Who Is Affected When a Pigouvian Tax Is Imposed on a Market

question 116

Multiple Choice

Who is affected when a Pigouvian tax is imposed on a market with a negative production externality?

• A) Producers
• B) Consumers
• C) Those affected by the externality
• D) All of these groups are affected when it becomes internalized.

---

Definitions:

Quick Part

A feature in Microsoft Word that allows users to insert preformatted elements such as headers, footers, or text boxes into their documents quickly.

Reusable Content

Components or pieces of content that can be reused in different documents or projects to save time and maintain consistency.

Themes Gallery

A collection or library of themes or visual styles that can be applied to documents or presentations to ensure consistency in design.

Custom Theme

A personalized design option that allows users to alter the aesthetic elements of a software interface, such as colors, fonts, and layout, to match their preferences.