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Environmental Economics: Taxes and Externalities Quiz

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Environmental Economics: Taxes and Externalities: a General level Economics quiz. Test your knowledge with 14 questions!

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Questions

Question 1

What is the goal of a Pigou tax?

A To decrease government spending

B To correct negative externalities

C To maximize corporate profits

D To increase industrial output

Question 2

Which of these is a classic example of a negative externality?

A Pollution

B Library services

C Public education

D Vaccinations

Question 3

A carbon tax is designed to:

A Lower the price of oil

B Increase factory production

C Encourage more driving

D Reduce carbon emissions

Question 4

What happens when a firm pays a Pigou tax?

A They must close the business

B They receive free land

C They internalize the cost of damage

D They stop paying income tax

Question 5

Externalities occur when a market transaction affects:

A Only the buyer

B Only the seller

C Someone not involved in the trade

D The government budget

📋 This quiz has 14 questions in total.