To Internalize a Positive Externality, an Appropriate Public Policy Response

question 21

Multiple Choice

To internalize a positive externality, an appropriate public policy response would be to

• A) ban the good creating the externality.
• B) tax the good.
• C) subsidize the good.
• D) have the government produce the good until the value of an additional unit is zero.

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Definitions:

Reactionary Movements

Groups or actions that aim to restore a previous state of society, often in response to perceived moral, social, or political decline.

Oppressive Society

A social system where certain groups are systematically subjected to discriminatory treatment, injustice, and coercive control by dominant groups.

Government Framework

A structure that outlines the organization, powers, and functions of the government, establishing how it operates and interacts with its citizens.

Law Overthrow

The act of removing or overturning established legal systems or principles.