Governments Can Increase the Consumption of a Product That Creates

question 248

Multiple Choice

Governments can increase the consumption of a product that creates positive externalities by

• A)subsidizing the production of the product so that the supply is increased and market price is reduced.
• B)taxing the production and consumption of the product.
• C)convincing everyone to consume the product.
• D)assigning property rights to the producers of the product.

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Definitions:

Impaired Memory

A reduction in the ability to remember information or events, which can be temporary or permanent.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions, hallucinations, and disorganized thinking.

Psychoactive Drugs

Substances that affect the mind, mood, and other mental processes by altering brain function.