A per-unit tax designed to internalize the costs of production imposed on third parties is called:
A) an excise tax.
B) an effluent fee.
C) a sin tax.
D) a tariff.

Name: A per-unit tax designed to internalize the costs of production imposed on third parties is called: A) an excise tax. B) an effluent fee. C) a sin tax. D) a tariff.
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Question

Quizplus · Accepted Answer

An effluent fee is a type of per-unit tax imposed to internalize the external costs of production, such as pollution, that affect third parties.

A Per-Unit Tax Designed to Internalize the Costs of Production