Which of the Following Is a Possible Government Solution to the Problem

question 143

Multiple Choice

Which of the following is a possible government solution to the problem posed by a good with an external benefit?

• A) Give a voucher to buyers of the good.
• B) Tax the consumption of the good.
• C) Tax the production of the good.
• D) All of the above are possible solutions.

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Definitions:

Oil Imports

The purchase of petroleum products or crude oil from foreign countries to meet a nation's energy needs and fuel its economy.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, potentially harming human health and the ecosystem.

Economic Security

The condition of having stable income or resources to support a standard of living now and in the foreseeable future, encompassing employment, health care, and social safety nets.

Solar Cells

Appliances that directly transform light energy into electrical energy via the photovoltaic effect, often found in solar panels.