A toll road used to subsidize public transportation in an effort to reduce pollution is an example of a corrective tax.

Question

Quizplus · Accepted Answer

A corrective tax is a type of tax that is intended to correct negative externalities. In this scenario, the toll road is acting as a corrective tax by charging drivers for using the road and using the revenue to fund public transportation, which can help reduce pollution.

A Toll Road Used to Subsidize Public Transportation in an Effort