Which of the Following Statements Is True

question 161

Multiple Choice

Which of the following statements is true?

• A)A tax applied to an activity that generates a negative externality always brings about the socially optimal level of output.
• B)A subsidy applied to an activity that generates a positive externality always brings about the socially optimal level of output.
• C)A tax applied to an activity that generates a positive externality may bring about the socially optimal level of output.
• D)A tax applied to an activity that generates a negative externality may bring about the socially optimal level of output.

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Definitions:

Task Groups

Teams or groups formed to accomplish specific objectives or tasks.

Conflict Development

This refers to the process by which disagreements or competitions evolve over time, potentially escalating into more serious conflicts or disputes.

Agenda

A list or plan of items to be discussed, acted upon, or achieved in a meeting or strategy session.

Decision Aid

Tools or systems designed to assist individuals or groups in making choices by organizing information, providing analytical capabilities, or suggesting potential outcomes.