Pigovian Taxes

question 113

Multiple Choice

Pigovian taxes

• A) are used to correct negative externalities.
• B) are used to correct positive externalities.
• C) are primarily designed to fund public goods.
• D) are a form of income tax.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Microwave Oven

A microwave oven is a kitchen appliance that heats and cooks food by exposing it to microwave radiation in the electromagnetic spectrum.

Total Variable Costs

The sum of all costs that vary with the level of output, such as materials and labor, which increase as production increases.

Microwave Ovens

Electrical kitchen appliances using microwave radiation to quickly cook or heat food and beverages.