Which of the following is true in relation to ECOTAX? 1. Tax imposed on private parties to feel the social burden of their action. 2. Increased tax on petroleum. 3. Are applied on business firms and…

Question

Which of the following is true in relation to ECOTAX? 1. Tax imposed on private parties to feel the social burden of their action. 2. Increased tax on petroleum. 3. Are applied on business firms and commercial entities. 4. Tax levied for creating positive externalities.

PYQPulse · Accepted Answer

1 & 2

PYQPulse · Answer

Explanation: An ecotax is a Pigouvian tax making polluters bear the social cost of their actions (e.g., higher taxes on petroleum); it addresses negative, not positive, externalities.

Which of the following is true in relation to ECOTAX? 1. Tax imposed on private parties to feel the social burden of their action. 2. Increased tax on petroleum. 3. Are applied on business firms and commercial entities. 4. Tax levied for creating positive externalities.

Answer: A. 1 & 2

Explanation

Which of the following is true in relation to ECOTAX? 1. Tax imposed on private parties to feel the social burden of their action. 2. Increased tax on petroleum. 3. Are applied on business firms and commercial entities. 4. Tax levied for creating positive externalities.

Answer: A. 1 & 2

Explanation