If the Government Wishes to Correct the Existence of Positive

question 145

Multiple Choice

If the government wishes to correct the existence of positive externality, it could

• A)grant subsidies to consumers to stimulate demand.
• B)impose a tax on the producers to stimulate supply.
• C)impose taxes on consumers to stimulate demand.
• D)grant subsidies to producers to reduce supply.

Grasp the concept of "empty nest" and its diverse impacts on parents, debunking the myth of uniform reactions.

Understand the changing nature of friendships in middle age, including the quantity and quality of friendships.

Appreciate the significance and dynamics of caring for elderly parents, including emotional and logistical challenges.

Analyze the complexities of the "sandwich generation", balancing caregiving responsibilities for both children and aging parents.

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Definitions:

Excise Tax

A tax applied on specific goods, such as tobacco and alcohol, usually to discourage their use or raise government revenue.

Excise Tax

A tax charged on specific goods and services, such as alcohol, tobacco, and gasoline, usually to discourage their use or generate revenue.

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.

Federal Income Tax

Federal income tax is the tax levied by the national government on individuals and organizations' annual earnings.