Government Can Internalize Externalities by

question 91

Multiple Choice

Government can internalize externalities by

• A)taxing goods with negative externalities and subsidizing goods with positive externalities.
• B)taxing goods with positive externalities and subsidizing goods with negative externalities.
• C)taxing goods with either positive or negative externalities.
• D)subsidizing goods with either positive or negative externalities.
• E)letting private markets determine output levels.

---

Definitions:

Market Price

This refers to the current price at which an asset or service can be bought or sold in a given market.

Annual Dividend

The total dividend payment a company makes to its shareholders in a fiscal year, often quoted as a rate per share.

Common Stock

Common stock is a form of corporate equity ownership, a type of security that represents ownership in a corporation, giving holders voting rights and a share of the company’s profits.

Accrued Interest

Interest that has been earned but not yet received or recorded as of a particular date.