When the Government Charges an Output Tax to Eliminate an Externality

question 42

Multiple Choice

When the government charges an output tax to eliminate an externality, it forces the manufacturer to ________ the negative externality.

• A)charge customers for
• B)internalize
• C)stop producing
• D)increase the production of

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Definitions:

Physical Dependence

A physiological state of adaptation to a specific substance, resulting in withdrawal symptoms when the substance is reduced or discontinued.

Amphetamines

A class of stimulant drugs that speed up the messaging between the brain and body, often used to treat ADHD and narcolepsy but can be abused as performance enhancers or recreational drugs.

Habituated

The process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Fatigued

A state of physical or mental exhaustion resulting from intense activity, stress, or lack of sleep.