The Government Can Internalize an Externality by Taxing Goods That

question 9

True/False

The government can internalize an externality by taxing goods that have negative externalities and subsidizing goods that have positive externalities.

---

Definitions:

Disruptive Malaise

A state of general discomfort or uneasiness, whose exact cause is difficult to identify, that disrupts regular functioning or well-being.

Sleep Disturbances

Varied issues related to sleeping, including difficulty falling or staying asleep, excessive sleepiness, or abnormal behaviors during sleep.

Sedative

A class of drugs that have a calming or tranquilizing effect, often used to treat anxiety or help with sleep.

Head Injury

A physical trauma to the head, often leading to brain damage or dysfunction.