An Appropriate Government Policy Toward Negative Externalities Is to

question 133

Multiple Choice

An appropriate government policy toward negative externalities is to

• A)subsidize the activity that creates the negative externality.
• B)impose a tax or fine on the activity that creates the negative externality.
• C)pay money to the party that creates the negative externality.
• D)impose a tax on recipients of the negative externality.

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Definitions:

Psychological Research

The systematic investigation of psychological issues and phenomena through controlled experimentation, observation, and analysis.

Individualistic Cultures

Societies that emphasize personal achievements and rights, prioritizing individual goals over group goals.

Collectivistic Cultures

Societies that prioritize the group over the individual, emphasizing community, cooperation, and interdependence.

Trait Theory

A theory in psychology focused on the identification and measurement of stable characteristics that individuals exhibit, known as traits.