To Correct for the Underproduction of Products with Positive Externalities

question 334

Multiple Choice

To correct for the underproduction of products with positive externalities, the government must

• A) provide the incentives for the private sector to produce and consume the good.
• B) provide tougher regulations on the industry.
• C) increase taxes on the industry.
• D) fine the industry.

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Definitions:

Gender

A social construct that refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Race

A social construct categorizing humans based on physical characteristics, ancestry, genetics, or social relations.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment, a key indicator of the labor market's health.

Adult Population

Individuals within a specified area or country who are of working age or older, often considered for labor market or demographic analyses.