_____ tax is designed to encourage people to take responsibility for the negative externalities they cause.

Question

Quizplus · Accepted Answer

A corrective tax is designed to correct the negative externalities caused by individuals or organizations. It is also known as a Pigovian tax, named after economist Arthur Pigou, who first proposed the idea of such a tax. The tax is imposed on activities that generate negative externalities, such as pollution or traffic congestion, to discourage those activities or to incentivize the development and adoption of cleaner or more sustainable alternatives.

_____ Tax Is Designed to Encourage People to Take Responsibility