If an Activity Generates a Positive Externality, the Government Can

question 115

Multiple Choice

If an activity generates a positive externality, the government can increase total economic surplus by ________ the activity, and if an activity generates a negative externality, the government can increase total economic surplus by ________ the activity.

• A)taxing; banning
• B)subsidizing; banning
• C)subsidizing; taxing
• D)publicizing; taxing

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Definitions:

Identity

The qualities, beliefs, personality, looks, and expressions that make a person or group unique.

High Self-Esteem

A positive view of oneself and confidence in one's own worth and abilities.

Identity

The way in which individuals perceive themselves and are recognized or distinguished by others, often shaped by personal choices and social influences.

Inflexible

Lack of flexibility or adaptability in thinking, planning, or interaction with the environment.