If the Government Wishes to Encourage Firms to Internalize Externalities

question 273

Multiple Choice

If the government wishes to encourage firms to internalize externalities, they should ________ activities resulting in negative externalities and ________ activities resulting in positive externalities

• A) tax; subsidize
• B) subsidize; tax
• C) ban; generate
• D) place an injunction against; tax

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Definitions:

Influenced By Drugs

Refers to the alterations in thoughts, behaviors, or physiological processes caused by the consumption of pharmaceutical or recreational substances.

Human Cerebral Cortex

The outer layer of the human brain involved in higher functions such as thought, memory, and consciousness.

Synapses

The junctions between neurons that allow them to communicate with each other through electrical or chemical signals.

Santiago Ramón y Cajal

A Spanish neuroscientist known for his pioneering work in neuroanatomy, specifically his detailed drawings of neurons.