A Society Can Sometimes Alleviate Problems Caused by Externalities by

question 176

Multiple Choice

A society can sometimes alleviate problems caused by externalities by

• A)having the government produce the good or service.
• B)using tax revenues to subsidize the firm causing the negative externality.
• C)using government expenditures to penalize the firm causing the positive externality.
• D)doing nothing.
• E)prohibiting the production of externalities.

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Definitions:

Rationalism

The belief that religion should be consistent with reason and evidence.

Existence Of God

The philosophical and theological inquiry into whether a deity or deities exist, often involving arguments and evidence from various disciplines.

Nonrational Parts

Aspects of the human psyche or behavior that are not governed by logic or reason, such as emotions or instincts.

Rational Part

The aspect of the human mind that is responsible for logic, reasoning, and analytical thinking.