If the Government Wishes to Encourage Firms to Internalize Externalities

question 125

Multiple Choice

If the government wishes to encourage firms to internalize externalities, they should tax activities resulting in ________ externalities and subsidize activities resulting in ________ externalities.

• A) negative; positive
• B) positive; negative
• C) no; positive
• D) negative; no

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Definitions:

Frequency Adjustment

The process of altering the rate or pitch of audio elements or electronic signals, commonly applied in medical devices, broadcasting, and sound production.

Aerosol Drug

Medication delivered in the form of a mist inhaled into the lungs, typically used for respiratory conditions.

Huff Coughs

A technique of coughing with an open glottis that is less forceful than a normal cough, designed to move mucus up the airways.

Percussion

A diagnostic technique used in medicine that involves tapping on the surface of the body to listen to the resulting sound for clues about the underlying structure.