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A Pigouvian Tax Is a Tax Designed to ________

Question 204

Multiple Choice

A Pigouvian tax is a tax designed to ________.


A) induce the consumers of a good to reduce their consumption of the good
B) induce the producers generating negative externalities to reduce production
C) induce the producers generating positive externalities to reduce production
D) force the producers to stop the production of a good in the short run

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