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

question 157

Multiple Choice

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

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

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Definitions:

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