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A Carbon Tax Is a Form of Pigouvian Tax, but What

Question 7

Multiple Choice

A carbon tax is a form of Pigouvian tax, but what is a Pigouvian tax?


A) A levy on activities that generate negative social costs
B) A bonus on activities that generate negative social costs
C) A levy on activities that generate positive social costs
D) A bonus on activities that generate positive social costs

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