An Appropriate Government Policy Toward Negative Externalities Is to

question 133

Multiple Choice

An appropriate government policy toward negative externalities is to

• A)subsidize the activity that creates the negative externality.
• B)impose a tax or fine on the activity that creates the negative externality.
• C)pay money to the party that creates the negative externality.
• D)impose a tax on recipients of the negative externality.

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Definitions:

Person Factor

Attributes or characteristics inherent to an individual that can influence behavior and outcomes.

Self-Efficacy

A person's belief in their ability to succeed in specific situations or accomplish a task.

Self-Monitoring

The process of observing and regulating one's own behavior in social situations to fit social norms or to achieve personal goals.

Self-Control

The ability to regulate and control impulses, emotions, and behaviors to achieve long-term goals.