In the Case of a Negative Externality,the Government Can Use

question 30

Multiple Choice

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

• A) tax; subsidy
• B) subsidy; tax
• C) tax; tax
• D) subsidy; subsidy

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Definitions:

Single Criterion

In decision-making, this term refers to evaluating options based on one key factor or condition.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, detailing assets, liabilities, and shareholders' equity.

Variable Expense

A cost that changes in proportion to the level of activity or volume of output in a business.

Income Statement

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing its operational performance.