If the revenues from a Pigovian tax are not directed to those who are affected by the externality,the outcome:
A) is efficient and maximizes surplus.
B) is not efficient and does not maximize surplus.
C) is efficient, but does not maximize surplus.
D) is not efficient and maximizes surplus.

Question

Quizplus · Accepted Answer

The Answer of If the revenues from a Pigovian tax are not directed to those who are affected by the externality,the outcome:
A) is efficient and maximizes surplus.
B) is not efficient and does not maximize surplus.
C) is efficient, but does not maximize surplus.
D) is not efficient and maximizes surplus.

If the Revenues from a Pigovian Tax Are Not Directed