Some Policymakers Have Argued That Products Like Cigarettes, Alcohol, and Sweetened

question 121

Multiple Choice

Some policymakers have argued that products like cigarettes, alcohol, and sweetened soft drinks generate negative externalities in consumption.If the government decided to impose a tax on pop, the government will cause

• A)consumers to internalize the externality.
• B)producers to internalize the externality.
• C)the external cost to drinking pop to become a private cost paid by the government.
• D)the external cost to drinking pop to become a private cost paid by producers.

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Definitions:

Single-Step Approach

A simple method of presenting an income statement where all revenues are summed in a single step before subtracting all expenses to find the net income.

Multiple-Step Approach

An income statement preparation method that highlights several steps or stages in determining net income, including operating and non-operating sections.

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards that provide guidelines for financial reporting globally.

Income from Operations

Earnings generated from a company's regular, core business activities, excluding non-operational income and expenses.