Which Statement Correctly Describes What a Pigouvian Subsidy Is

question 258

Multiple Choice

Which statement correctly describes what a Pigouvian subsidy is?

• A) Subsidies received by the producers are called Pigouvian subsidies.
• B) Pigouvian subsidies are awarded to producers whose goods have external benefits.
• C) Taxes on producers creating negative externalities are called Pigouvian subsidies.
• D) Lower corporate tax rates are also known as Pigouvian subsidies.

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Definitions:

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A measure of the difference between exports from and imports into a country.