Pigouvian Taxation

question 47

Multiple Choice

Pigouvian taxation:

• A) involves the use of taxes or fees to remedy negative externalities.
• B) involves the use of subsidies to remedy negative externalities.
• C) is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
• D) requires that victims of an externality pay a tax to the producers of the externality.

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Definitions:

Procedural Memory

A type of long-term memory responsible for knowing how to perform different actions and skills, essentially the memory of how to do things.

Recall

The cognitive process of retrieving information from memory, which can range from remembering past events to recollecting learned facts.

Semantic Encoding

The process of encoding sensory information into memory in a meaningful way, associating it with concepts and knowledge already in memory.

Acoustic Encoding

The process of converting auditory information into a memory or cognitive representation in the brain.