Figure 10-5 -Refer to Figure 10-5.To Internalize the Externality in This Market,what

question 78

Multiple Choice

Figure 10-5

-Refer to Figure 10-5.To internalize the externality in this market,what should the government do

• A)impose a tax on this product
• B)provide a subsidy for this product
• C)encourage firms to supply more of this product by offering tax incentives
• D)produce the product itself

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Definitions:

Anaphylactic Shock

A severe, often fatal form of shock characterized by smooth muscle contraction and capillary dilation initiated by cytotropic (IgE class) antibodies.

Epinephrine

A hormone and medication, also known as adrenaline, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response.

Allergist

A specialist who diagnoses and treats physical reactions to substances including mold, dust, fur, pollen, foods, drugs, and chemicals.

Cholecystitis

Inflammation of the gallbladder, often caused by gallstones, leading to acute pain and other digestive symptoms.