131k views
0 votes
Corrective taxes are typically advocated to correct for the effects of A. patents. B. negative externalities. C. positive externalities. D. All of the above are correct.

1 Answer

0 votes

Answer:B)Negative externalities.

Negative externalities are cost that is being suffered by a third party as a consequence of an economic transaction.

In a situation where a country has been turned into a dumping ground,foreign sells lower lower than the country's indegenous industries.This situation tend to discourage local industries from producing as they can't produce at such price .The government of such country can use a corrective tax policy by increasing the tax leveled on these imported goods and reducing tax on local industries.This will encourage exportation and discourage importation which is one of the parameters for economy development.

Step-by-step explanation:

User DanJ
by
6.0k points