The Government Has Identified a Situation Where the Production of a Good

question 84

Multiple Choice

The government has identified a situation where the production of a good is creating a negative externality.The government should enact legislation to require firms to internalize the externality

• A) in all such cases.
• B) if the benefits of doing so outweigh the costs.
• C) as long as it will not increase the price of the good being produced.
• D) as long as it will not create unemployment in this industry.
• E) as long as there are positive health benefits associated with this policy.

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Definitions:

Physiological Needs

Basic human requirements for survival and physical well-being, such as food, water, shelter, and sleep, as identified in Maslow's hierarchy of needs.

Security Needs

Fundamental requirements concerning an individual's or entity's need for safety and protection from harm.

Deficiency Needs

According to Maslow's hierarchy of needs, these are basic needs (such as food, shelter, and safety) that must be met before an individual can focus on higher-level psychological needs.

Security Needs

Basic human requirements for safety and protection from physical or emotional harm.