Which of the Following Statements Is Correct

question 535

Multiple Choice

Which of the following statements is correct?

• A)Government should tax goods with either positive or negative externalities.
• B)Government should tax goods with negative externalities and subsidize goods with positive externalities.
• C)Government should subsidize goods with either positive or negative externalities.
• D)Government should tax goods with positive externalities and subsidize goods with negative externalities.

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Definitions:

Goals

Targets or objectives that a person or organization aims to achieve.

Abilities

The competency or skill sets that an individual possesses, enabling them to perform various tasks or activities.

Reasons

Justifications or explanations for actions or beliefs.

Half-lives

The time required for half of a particular substance or entity to undergo a process, such as radioactive decay.