Governments Can Increase the Consumption of a Product That Creates

question 248

Multiple Choice

Governments can increase the consumption of a product that creates positive externalities by

• A)subsidizing the production of the product so that the supply is increased and market price is reduced.
• B)taxing the production and consumption of the product.
• C)convincing everyone to consume the product.
• D)assigning property rights to the producers of the product.

---

Definitions:

Proposition

A declaration that presents an evaluation or viewpoint, which may either be correct or incorrect.

Predicate

The part of a sentence or proposition that tells something about the subject, such as an action, condition, or effect.

Categorical Proposition

A proposition containing a subject and a predicate term and asserting that some or all of the referents of the subject term are included in or excluded from the class designated by the predicate term.

Predicate Class

A category of predicates that share common characteristics in their formulation or application.