Some Policymakers Have Argued That Products Like Cigarettes, Alcohol, and Sweetened

question 157

Multiple Choice

Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption.If the government decided to impose a tax on soda, the government will cause

• A)consumers to internalize the externality.
• B)producers to internalize the externality.
• C)the external cost to drinking soda to become a private cost paid by the government.
• D)the external cost to drinking soda to become a private cost paid by producers.

---

Definitions:

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Corn Seed

The seed of the corn plant, used for planting to produce corn crops; an essential agricultural product.

Yield Per Acre

The amount of a crop produced on one acre of land.

Lemonade Market

A hypothetical or real market scenario used to explain basic economic concepts, often involving the buying and selling of lemonade.