Which of the Following Might Be a Method That the Government

question 47

Multiple Choice

Which of the following might be a method that the government could use to correct a negative externality?

• A) an effluent fee on waste from the production of goods that create negative externalities
• B) government subsidies to producers of goods that create negative externalities
• C) financing additional production of goods that create negative externalities
• D) encouraging overallocation of resources of production of goods that create negative externalities

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Definitions:

B2C

Business-to-Consumer, a commercial transaction model where businesses sell products or services directly to the end-users or consumers.

C2B

Consumer-to-Business, a business model where consumers create value or products that businesses purchase.

B2B

Business-to-Business, a model that involves transactions between two firms rather than between a firm and individual consumers.

Ordering Cost

The expenses incurred in placing and receiving orders for materials or products, including paperwork, communication, and transportation costs.