One Way to Make Consumers Take a Negative Externality into Account

question 44

Multiple Choice

One way to make consumers take a negative externality into account when making demand decisions is to:

• A)place a tax on the item.
• B)subsidize the purchase of the item.
• C)give suppliers a production credit.
• D)None of these are true.

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Definitions:

Personnel Changes

Alterations in the composition or structure of the workforce, including hiring, firing, promotions, or transfers.

Investment Centre

A segment or division within a company for which the manager has control and is responsible for its revenue, expenses, and assets, and return on investments.

Performance Measure

Metrics or indicators used to evaluate the effectiveness, efficiency, and success of an organization's activities or an individual's performance.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.