Multiple Choice
Which statement correctly describes what a Pigouvian subsidy is?
A) Subsidies received by the producers are called Pigouvian subsidies.
B) Pigouvian subsidies are awarded to producers whose goods have external benefits.
C) Taxes on producers creating negative externalities are called Pigouvian subsidies.
D) Lower corporate tax rates are also known as Pigouvian subsidies.
Correct Answer:
Verified
Correct Answer:
Verified
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