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

Question

Quizplus · Accepted Answer

All of these options are examples of Pigovian taxes. Pigovian taxes are taxes on products or activities that generate negative externalities, such as smoking, drinking, or driving. The taxes are intended to encourage consumers to reduce their consumption of these goods and services, thus reducing the negative impact on society.

An Example of a Pigovian Tax Would Be a Tax