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Which one of the following is a means of coping with a negative externality?

A) emission subsidies
B) patents
C) vouchers
D) Pigovian taxes
E) copyrights

1 Answer

3 votes

Final answer:

Pigovian taxes are a means of coping with a negative externality.

Step-by-step explanation:

The means of coping with a negative externality is Pigovian taxes. Pigovian taxes are taxes imposed on goods or activities that create negative externalities, such as pollution. By taxing the negative externality, the government discourages the behavior or activity causing the externality and provides an incentive for firms to reduce their negative impact on society.

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