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:

Mandarin Oranges

A small citrus fruit with a sweet flavor and easy-to-peel skin, often eaten fresh or used in salads.

Cable TV Service

A system of delivering television programming to consumers via radio frequency signals transmitted through coaxial cables or digital light pulses.

Interdependent Firms

Companies whose operations and outcomes are mutually influenced, typically seen in competitive markets where the actions of one firm affect the sales and strategies of others.

Oligopoly

An industry with only a small number of producers.