Which of the Following Is an Example of a Pigovian

question 98

Multiple Choice

Which of the following is an example of a Pigovian tax?

• A) payments by utilities to obtain tradable emissions allowances
• B) a payroll tax
• C) payments for licenses to pollute
• D) a tax imposed on a utility that internalises the cost of externalities caused by the utility

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Definitions:

Grand Larceny

A crime involving the theft of property or money over a value specified by law, considered more serious than petty larceny.

Misdemeanor

A criminal offense that is less serious than a felony and generally punishable by fine, penalty, or short-term imprisonment.

Grand Larceny

A serious theft crime involving the unlawful taking of property or money over a certain value, as defined by law.

Prostitution

The practice of participating in sexual acts in exchange for money.