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22. When a negative externality is present, a tax that forces producers to bear the full cost of their actions is called a(n) (a) Tariff. (b) Corrective tax. (c) Inefficient tax. (d) Subsidy.
22. When a negative externality is present, a tax that forces producers to bear the full cost of their actions is called a(n) (a) Tariff. (b) Corrective tax. (c) Inefficient tax. (d) Subsidy.
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Related textbook solutions
Related questions
A negative externality occurs when _____.
| a. |
a person's action harm others, and that person does not bear the cost that others bear |
|
| b. |
a person breaches the social contract |
|
| c. |
a person's actions create benefits that other persons benefit from, but do not pay for |
|
| d. |
a person ceases activities that are external to the economic processes, in which that person engages |
