To Correct a Positive Externality Problem, the Government Can Impose

question 162

Multiple Choice

To correct a positive externality problem, the government can impose

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

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Definitions:

Care Management

A systematic approach to healthcare that involves planning, coordination, and evaluation to meet an individual's comprehensive health needs.

Facilitate Communication

The process of making the exchange of information easier between individuals or groups.

Deceased Parent

Refers to a parent who has passed away, often impacting a child's emotional and psychological well-being.

Expressing Hurt

The act of verbally or non-verbally conveying feelings of pain, sadness, or emotional distress to others.