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:

Cold Viruses

Viruses responsible for the common cold, primarily rhinoviruses, which cause upper respiratory infections.

Negative Affect

A psychological concept referring to a broad range of negative emotions, including sadness, anxiety, and anger.

Psychological Factors

Psychological Factors include individual's thoughts, feelings, attitudes, and behaviors that influence their mental health and overall well-being, often playing a significant role in both physical and mental health disorders.

Ulcers

Open sores that develop on the lining of the stomach, small intestine, or esophagus, often painful.