Taxes on specific goods are a method to reduce negative externalities of polluting firms.

Name: Taxes on specific goods are a method to reduce negative externalities of polluting firms.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Taxes on specific goods, such as carbon taxes, can make polluting firms internalize the negative externalities they impose on society by making them pay for the damages they cause. This can provide an incentive for them to reduce their pollution levels and eventually invest in cleaner technologies.

Taxes on Specific Goods Are a Method to Reduce Negative