Which of the Following Represents a Way That a Government

question 202

Multiple Choice

Which of the following represents a way that a government can help the private market to internalize an externality?

• A)taxing goods that have negative externalities
• B)subsidizing goods that have positive externalities
• C)The government cannot improve upon the outcomes of private markets.
• D)Both a and b are correct.

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Definitions:

Estimated Regression Line

The line that best fits a set of data points in linear regression, representing the expected value of the dependent variable for any given value of the independent variable.

Sales

The activities and processes involved in selling goods or services to consumers or businesses.

Sample Correlation Coefficient

A statistical measure that quantifies the strength and direction of the linear relationship between two quantitative variables in a sample.

Dependent Variable

In an experiment or model, the variable that is being tested and measured, expected to change in response to changes in the independent variable.