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.

---

Definitions:

Desires

Intense desires or aspirations for something to occur or exist.

Continuing Desire

An ongoing or persistent yearning or craving for something, often with emotional significance.

Indiscriminately

Without making distinctions or showing a discernible pattern; randomly or haphazardly.

Sex

A biological classification based on reproductive organs and functions from genetic, physiological, and anatomical perspectives.