Taxes that are enacted to mitigate the effects of negative externalities are sometimes called
a. control taxes.
b. command levies.
c. Pigovian taxes.
d. Marshallian taxes.
c
You might also like to view...
Which of the following statements about the underground economy is true?
A) Most transactions that occur in the underground economy are included in the calculation of GDP. B) Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run. C) Income that is earned but not reported as income for tax purposes is included in the calculation of GDP. D) The underground economy in developing countries amounts to less than 10% of measured GDP.
If a US citizen is employed by a US company in Russia, the income she earns is:
a. part of US GNP and Russian GDP. b. part of US GNP and Russian GNP. c. part of US GDP and Russi GNP d. part of US GDP and Russia GDP.
In which of the following ways does government affect the consumption component of planned aggregate expenditures?
a. Through net taxes, which change disposable income b. By purchasing goods and services, which increase consumption c. By using subsidies to encourage firms to invest d. By reducing the interest rate to encourage firms to invest e. By producing public goods
An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields, all else equal
a. True b. False Indicate whether the statement is true or false