The Three Main Methods That Governments Use to Cope with an External

question 156

Multiple Choice

The three main methods that governments use to cope with an external cost of production include all of the following EXCEPT

• A) taxes.
• B) mandating clean technology.
• C) cap-and-trade
• D) price floors.

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Definitions:

Caldera

A vast crater on a volcano, often resulting from a major eruption and subsequent collapse of the volcano's opening.

Magma

Igneous rocks form from this liquid rock that exists below the Earth's surface, cooling and solidifying over time.

Past Eruptions

Historical instances of volcanic activity where molten rock (lava), volcanic ash, and gases were expelled from a volcano.

Central Crater

The main depression at the summit of a volcano, formed by explosive ejection of material and collapse of the area above the magma chamber.