A Corrective Tax Equal to the External Cost Imposed on Third

Multiple Choice

A corrective tax equal to the external cost imposed on third parties levied on polluters will:

A) ​eliminate all pollution.
B) ​increase the level of pollution.
C) ​force polluters to internalize the external cost resulting from their actions.
D) ​usually have no impact whatsoever on pollution levels, but will generate tax revenue for the government.