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Question

Do Homework- brooke Kelsey- Google Chrome Secure https://www.mathul.com Student PlayerHomework aspx?homeworkId-463391 113&questionlds; EC 350 MyEconLab Spring 2018 Section 2 Homework: Chapter 4 Homework Score: 0 of 1 pt End of Chapter 3.1 140123(18 complete) NScore: 76.81%, 17.6 Question H A Pigovian tax is O A. a tax to completely eliminate externalities O B. a tax to bring about an efficient level of output in the presence of externalities O C. a tax that creates deadweight loss O D, a cost that parties incur in the process of agreeing to and carrying out an exchange of goods and services. O E. a tax that creates an externality Click to select your answer and then click Check Answer remaining Clear All Final Check ype her

Explanation / Answer

Pigovian tax is a tax to bring out an efficient level of output in the presence of externalities. It eliminates negative externalities.The tax reduces the output to the optimal level where marginal social benefit is equal to marginal social cost.

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