Pigouvian Taxation

question 34

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 principles 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:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the subject to associate certain actions with specific consequences.

Observation

The act of closely monitoring or taking notice of something or someone, often used as a method in scientific research and daily learning.

Respondent Conditioning

A form of learning in which an individual develops a reflexive response to a previously neutral stimulus by associating it with another stimulus that already elicits that response.

Direct Reinforcement

The process by which a behavior is strengthened or increased by immediately following it with a positive stimulus or reward.