Which of the Following Policies Addresses the Problem Posed by Positive

question 67

Multiple Choice

Which of the following policies addresses the problem posed by positive externalities?

• A) a subsidy to the agent that generates the positive externality
• B) a tax on the agent that generates the positive externality
• C) limit the activity that generates the positive externality
• D) a subsidy to the agents that benefit from the positive externality

---

Definitions:

Problem Drinkers

Individuals who consume alcohol in ways that create physical, social, or emotional problems but may not meet the criteria for alcohol dependence.

Substance Abuse

The excessive use of substances, especially alcohol or drugs, leading to clinical and functional impairments, such as health problems and disability.

Blacks Out

Losing consciousness or memory for a period of time, often due to excessive alcohol consumption or medical conditions.

Drinks Alone

The act of consuming alcoholic beverages in isolation, which can sometimes indicate underlying issues such as depression or alcohol dependency.