The author of a newspaper article remarks that many economists "support Pigovian taxes because, in some sense, we are already paying them."
Source: Adam Davidson, "Should We Tax People for Being Annoying?" New York Times, January 8, 2013.
A Pigovian tax is a government tax intended to
A. bring in revenue.
B. bring about an efficient level of output in the presence of externalities.
C. reduce producer surplus.
D. reduce the national debt.
In a sense, consumers in a market might be "paying" a Pigovian tax even if the government hasn't imposed an explicit tax if there are
A. negative externalities in that market so that consumers are experiencing an external cost.
B. positive externalities in that market so that consumers are experiencing an external benefit.
C. negative externalities in that market so that consumers are experiencing an external benefit.
D. positive externalities in that market so that consumers are experiencing an external cost.
