Which of the Following Is an Example of a Pigovian

question 144

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 licences to pollute
• D) A tax imposed on a utility that internalises the cost of externalities caused by the utility

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Definitions:

Atomic

Relating to the basic, indivisible components of matter.

Truth-functional Compound

A logical statement whose truth value depends solely on the truth values of its components.

Quantifier

A symbolic expression in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic Open Sentence

A simple sentence in symbolic logic that contains variables but does not contain any logical connectives and cannot be further divided into simpler sentences.