A Pigouvian Subsidy

question 25

Multiple Choice

A Pigouvian subsidy

• A) cannot exist with externalities.
• B) is the same thing as a Pigouvian tax.
• C) is measured in terms of Pigouvian dollars.
• D) moves production to the socially optimal level of output.

---

Definitions:

Federal District Court Judges

Officials appointed to preside over one of the 94 federal district courts in the United States, handling both civil and criminal cases.

Judicial Review

The power of courts to assess the legality of laws and government actions and to declare them unconstitutional if they violate constitutional principles.

Stare Decisis

A legal principle that obligates courts to follow the precedents set by previous decisions when making rulings.

Writs of Certiorari

Orders by a higher court to a lower court to send up the records of a case for review, often used by the U.S. Supreme Court to select specific cases for consideration.