If Government Uses Taxation to Correct for Negative Externalities, the Desired

question 169

Multiple Choice

If government uses taxation to correct for negative externalities, the desired consequence is

• A)a decrease in the quality of the good produced.
• B)an increase in the quantity of the good produced and/or consumed.
• C)a raise in revenue that can be used to provide subsidies to consumers.
• D)a decrease in the quantity of the good produced and/or consumed.
• E)increased revenue.

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Definitions:

Visible Light

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 380 to 750 nanometers in wavelength.

Photosynthetic Pigments

Molecules found in plants and other photosynthetic organisms that absorb light energy for use in photosynthesis, including chlorophyll and carotenoids.

Carotenoids

Pigments found in plants and some microorganisms that play a role in photosynthesis and provide color to fruits and vegetables.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, crucial for photosynthesis.