Pigouvian Taxation

Multiple Choice

Pigouvian taxation:

A) involves the use of taxes or fees to remedy negative externalities.
B) involves the use of subsidies to remedy negative externalities.
C) is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
D) requires that victims of an externality pay a tax to the producers of the externality.