Which Action Should Government Take in Order to Internalize Externalities

question 97

Multiple Choice

Which action should government take in order to internalize externalities

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

Forbidden Sexual

Typically refers to sexual behaviors or desires that are considered taboo or prohibited by societal norms, cultural traditions, or legal restrictions.

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Successful Resolution

Refers to the effective resolution of problems or conflicts, resulting in a satisfactory outcome for all parties involved.

Oedipus

In psychoanalytic theory, a complex of emotions aroused in a young child, typically around the age of 4, by an unconscious sexual desire for the parent of the opposite sex and a wish to exclude the parent of the same sex.