Figure 10-7 -Refer to Figure 10-7. to Internalize the Externality in This

question 284

Multiple Choice

Figure 10-7
-Refer to Figure 10-7. To internalize the externality in this market, the government should

• A)impose a tax on this product.
• B)provide a subsidy for this product.
• C)forbid production.
• D)produce the product itself.

Understand the concept of globalization and its impact on markets and production.

Recognize the importance of international organizations in facilitating global trade and cooperation.

Identify and analyze the factors contributing to the globalization of markets.

Examine the role and impact of raw materials in global trade.

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Definitions:

Investing

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Tea Party

A grassroots Republican movement that emerged in 2009 named for the Boston Tea Party of the 1770s. The Tea Party opposed the Obama administration’s sweeping legislative enactments and advocated for a more stringent immigration policy.

Fourteenth Amendment

1868 constitutional amendment that guaranteed rights of citizenship to former slaves, in words similar to those of the Civil Rights Act of 1866.

Federal Government

The federal government is the national level of government, with powers divided between it and the individual states, as outlined in a country's constitution.