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:

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.

Semantic Memory

The type of declarative memory that stores general knowledge, or objective facts and information.

Retrieval Cues

Stimuli or signals that can trigger the recall of information stored in the memory.