Asked by
prathit Barot
on Nov 17, 2024
Verified
A corrective tax places a price on the right to pollute.
Corrective Tax
A tax designed to internalize externalities, effectively correcting market outcomes that might otherwise result in social inefficiency.
- Comprehend the processes involved in internalization of externalities for the amendment of market results.
- Understand the implications of corrective taxes and subsidies on economic efficiency and government revenue.
Verified Answer
MS
Learning Objectives
- Comprehend the processes involved in internalization of externalities for the amendment of market results.
- Understand the implications of corrective taxes and subsidies on economic efficiency and government revenue.
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