In Order to Induce a More Socially Optimal Level of Output

question 12

Multiple Choice

In order to induce a more socially optimal level of output governments can __________goods associated with negative externalities and__________ goods associated with positive externalities.

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

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Definitions:

Erikson

A developmental psychologist famous for his theory on the psychosocial development of humans, consisting of eight stages from infancy to adulthood.

Identity Moratorium

A phase in identity development where individuals are actively exploring options but have not yet made commitments.

Identity Achiever

A term from James Marcia's theory, referring to an individual who has gone through an identity crisis and has made a commitment to a sense of identity (i.e., a set of values, ideals, and goals).

Identity Foreclosure

A stage in adolescent development in which an individual prematurely commits to an identity without adequately exploring alternatives.