Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?

• A) If the consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good.
• B) If the production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good.
• C) If the production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good.
• D) If the consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest in the company.

Millions

A numerical term referring to a count or value in the millions, often used in financial contexts to indicate quantities or sums.

Operating Cash Flow

An assessment of the cash income resulting from a company's standard operational processes.

Millions

A numerical term representing one thousand thousands, or 1,000,000.