An example of a Pigovian tax would be a tax on:
A)cigarettes.
B)alcohol.
C)gasoline.
D)A tax on any of these goods would be a Pigovian tax.

Question

Quizplus · Accepted Answer

Pigovian taxes are levied on any market activity that generates negative externalities, where the social cost of the activity exceeds the private cost. Cigarettes, alcohol, and gasoline all create negative externalities (health issues, social problems, and environmental pollution, respectively), making a tax on any of these goods a Pigovian tax.

An Example of a Pigovian Tax Would Be a Tax