If the Production of a Product Results in Significant External

question 235

Multiple Choice

If the production of a product results in significant external costs, an appropriate government policy might be to

• A) subsidize the production of the good.
• B) tax producers and thus shift the supply curve to the left.
• C) tax consumers' incomes and thus shift the demand curve to the left.
• D) subsidize consumers since the good is being under-consumed.

---

Definitions:

MIME

Multipurpose Internet Mail Extensions, a standard that extends email to support text in character sets other than ASCII, as well as attachments of audio, video, images, and application programs.

Encryption

The act of transforming data or information into a cipher, mainly to stop unauthorized users from accessing it.

MIME

Multipurpose Internet Mail Extensions, a standard that extends the format of email messages to support text in character sets other than ASCII, as well as attachments of audio, video, images, and application programs.

SSL Encryption

A method for securing data in transmission between a client and a server on the internet, utilizing cryptographic protocols to ensure confidentiality and integrity.