To Correct for Negative Externalities, the Government

question 21

Multiple Choice

To correct for negative externalities, the government

• A) should allow the price system do the correction.
• B) can impose a tax.
• C) can provide a subsidy to consumers.
• D) should create a public good.

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Definitions:

Hinged Trailer Door

a door mechanism on trailers that is attached by hinges, allowing it to swing open and closed for access or loading.

Curtain-Sided

Describes a trailer or truck with flexible sides (curtains) that can be opened for easy loading and unloading, while offering protection during transit.

Open-Top Van

A type of freight vehicle or container featuring an open top to allow for the transportation of oversized items or loading from above.

Unibody Construction

A method of automobile manufacturing in which the body and chassis form a single, integrated unit, reducing weight and increasing rigidity.