_____ is a tax levied on activities that generate a negative externality so that the externality is considered in the decision making.
A) An environmental tax
B) A corrective tax
C) A sales tax
D) A property tax

Question

Quizplus · Accepted Answer

A corrective tax is specifically designed to account for the external costs of negative externalities, making it the correct choice. It aims to correct the market outcome by including these external costs in the decision-making process of consumers and producers.

_____ Is a Tax Levied on Activities That Generate a Negative