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.

---

Definitions:

(S)-2-hydroxybutanoic Acid

An optically active form of hydroxybutanoic acid, which has a specific spatial configuration designated as S (from the Latin sinister, meaning left).

Fischer Projection

A method to represent the three-dimensional structure of molecules on a two-dimensional plane, emphasizing the configuration of chiral centers.

Fischer Projection

A two-dimensional representation of a three-dimensional organic molecule by projecting bonds from a chiral center, used to depict stereochemistry.

Chiral

Describes a molecule that cannot be superimposed on its mirror image, often resulting in molecules that have different biological activities.