Refer to the Figure Below

question 9

Multiple Choice

Refer to the figure below. To correct the externality problem, the government could

• A) provide a subsidy for the good.
• B) impose a tax on the good.
• C) produce the good itself.
• D) provide more incentives for producers to produce more.
• E) encourage buyers to buy more of the good.

---

Definitions:

Anorexia Nervosa

Anorexia nervosa is a severe eating disorder primarily characterized by an intense fear of gaining weight and a distorted body image, leading to dangerous weight loss.

Peak Age

The age at which an individual's performance, skill, or ability in a specific domain is at its highest.

Body Project

A mental and social process through which an individual focuses on their physical appearance for self-improvement or societal acceptance.

Eating Disorders

Psychological conditions characterized by abnormal or disturbed eating habits, which can severely affect an individual's physical and mental health.