An Appropriate Government Policy Toward Negative Externalities Is to

question 133

Multiple Choice

An appropriate government policy toward negative externalities is to

• A)subsidize the activity that creates the negative externality.
• B)impose a tax or fine on the activity that creates the negative externality.
• C)pay money to the party that creates the negative externality.
• D)impose a tax on recipients of the negative externality.

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Definitions:

Sound Waves

Mechanical vibrations that travel through a medium such as air, water, or solid materials, and can be heard when they reach a human or animal ear.

Pulses

Rapid, transient changes in the amplitude of an electrical signal, often used to convey information or trigger specific actions in electronic devices.

Pressure Switch

A device that activates or deactivates electrical contact in response to changes in pressure level.