Which of the following describes why corrective taxes, such as the gasoline tax, are unlike most other taxes?. . . A.Corrective taxes alter incentives, whereas other taxes typically do not.. . B.Corrective taxes bring the allocation of resources closer to the social optimum and, thus, improve economic efficiency.. . . C.Other taxes are typically used to cover general spending, but funds from corrective taxes can be used only to alleviate pollution.. . D. Other taxes get passed on from businesses to consumers, whereas corrective taxes do not.

Respuesta :

"Corrective taxes bring the allocation of resources closer to the social optimum and, thus, improve economic efficiency" is the one among the following that describes why corrective taxes, such as the gasoline tax, are unlike most other taxes. The correct option among all the options that are given in the question is option "B".

Corrective taxes are enacted to deal with external costs that have a negative effect. Therefore, corrective taxes are unlike other taxes because they improve the efficiency of the economy by working on the allocation of nature’s resources. So the answer is B.