An example of a Pigovian tax would be a tax on:
A)income.
B)cigarettes.
C)corporate capital gains.
D)A tax on any of these goods would be a Pigovian tax.

Question

Quizplus · Accepted Answer

Pigovian taxes are levied to correct the negative externalities caused by certain goods or activities. Cigarettes create health issues that can burden public health systems, thus taxing them is an example of a Pigovian tax aimed at reducing consumption and offsetting its societal costs.

An Example of a Pigovian Tax Would Be a Tax