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:

Irritability

A state of increased sensitivity to stimuli resulting in easy annoyance or anger.

Psychoactive Drugs

Chemical substances that affect the mind, mood, and other mental processes.

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and heightened suggestibility.

Memory Accuracy

Refers to the degree to which remembered information mirrors the actual events that occurred.