Suppose That Alcohol Consumption Creates a Negative Externality

question 353

Multiple Choice

Suppose that alcohol consumption creates a negative externality. What can the government do to equate the equilibrium quantity of alcohol and the socially optimal quantity of alcohol?

• A)impose a tax on alcohol that is equal to the per-unit externality
• B)offer a subsidy on alcohol that is equal to the per-unit externality
• C)impose a regulation limiting the amount of alcohol that each consumer can purchase
• D)nothing

---

Definitions:

Multidimensional Assessment

An evaluation approach that considers multiple aspects or factors of a subject to gain a comprehensive understanding.

Case Management Services

A collaborative process that assesses, plans, implements, coordinates, monitors, and evaluates options and services to meet an individual’s health needs through communication and available resources.

Outcome Evaluation

The process of measuring the results of a program or intervention to determine its effectiveness in achieving its intended goals.

Indexed

In databases, having a data structure that improves the speed of data retrieval operations on a database table at the cost of additional writes and storage space.