Government Can Correct for Negative Externalities by

question 262

Multiple Choice

Government can correct for negative externalities by

• A) decreasing taxes.
• B) increasing taxes or regulation.
• C) allowing the market system to correct the problem.
• D) decreasing the costs to those responsible for the externality.

---

Definitions:

Corporate Vertical Marketing System

A tightly integrated supply chain structure where a single company owns or controls each step of the production and distribution process.

21st Century Fox

A former American multinational mass media corporation involved in film and television production, known for its significant influence in the entertainment industry.

Integrated Marketing System

A cohesive marketing strategy that ensures all forms of communications and messages are linked together and support the core brand message.

Retailer-sponsored Cooperative

A group of independent retailers that band together to purchase in bulk and enhance their marketing efforts, sharing costs and benefits.