To Correct a Negative Externality Problem, the Government Can Impose

question 172

Multiple Choice

To correct a negative externality problem, the government can impose

• A)a subsidy to increase the marginal private costs.
• B)a subsidy to increase the marginal social costs.
• C)a tax to increase the marginal private costs.
• D)a tax to increase the marginal social costs.
• E)either a tax or a subsidy to change the marginal social costs.

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Definitions:

Ethnic Minority

A demographic group within a larger community that has different national or cultural traditions from the main population.

Performance Pressure

The stress or anxiety one feels to perform well in a given task or situation, often because of high expectations from oneself or others.

Occupational Stress

The chronic stress experienced as a result of workplace conditions or demands.

Robert Karasek

A researcher known for his work on job strain, who developed the Job Demand-Control Model, relating workplace stress to the balance between job demands and the degree of control a worker has.