Government Can Internalise an Externality by Taxing the Goods That

question 41

True/False

Government can internalise an externality by taxing the goods that have negative externalities and subsidising the goods that have positive externalities.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally performed or made in-house, to reduce costs or improve efficiency.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.

Company Coalition

A temporary alliance or partnership between companies to achieve a common objective, often strategic or operational.

Suppliers

Entities that provide goods or services to another organization, usually in a business-to-business relationship.