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:

Causal Conclusions

Inferences that establish a cause-effect relationship between two or more events or conditions.

Observational Study

A research method in which subjects are observed in their natural environment without experimental intervention by the researcher.

Confounding Variable

An external variable that can influence the outcomes of an experimental study, potentially leading to misleading conclusions if not controlled.

Triggering Attendance Policy

A policy that initiates consequences or actions when specific attendance criteria are not met in an educational or workplace setting.