If a Producer Is Imposing an External Cost on Society,the

question 49

Multiple Choice

If a producer is imposing an external cost on society,the best response would be to

• A) lower the producer's taxes to offset pollution.
• B) increase the production.
• C) internalize the externality.
• D) subsidize the producer.

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Definitions:

Political Science

The systematic study of government structures, processes, and political activities and behavior.

For-profit University

An educational institution operated by private sector companies and intended to generate profit for shareholders, often offering a range of degree programs.

Family Income

The total amount of money earned or received by all members of a household, which can impact access to resources, opportunities, and overall quality of life.

Stereotype Threat

The risk of confirming negative stereotypes about an individual’s racial, ethnic, gender, or cultural group, which can hinder performance in a variety of domains.