Which of the Following Statements Is Correct

question 535

Multiple Choice

Which of the following statements is correct?

• A)Government should tax goods with either positive or negative externalities.
• B)Government should tax goods with negative externalities and subsidize goods with positive externalities.
• C)Government should subsidize goods with either positive or negative externalities.
• D)Government should tax goods with positive externalities and subsidize goods with negative externalities.

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Definitions:

Hunger

The discomfort, illness, or weakness caused by a lack of food, which may lead to malnutrition or starvation.

Farmers

Individuals or entities engaged in the practice of agriculture, cultivating land and raising crops or livestock for consumption or sale.

1990s

The decade spanning from January 1, 1990, to December 31, 1999, characterized by significant technological advancements and global political changes.

Oil Prices

The cost per barrel of crude oil, which fluctuates based on global supply and demand dynamics, geopolitical factors, and market speculation.