To Correct for Positive Externalities the Government

question 78

Multiple Choice

To correct for positive externalities the government

• A) should allow the price system to do the correction.
• B) can impose a tax.
• C) can give a subsidy.
• D) should create a public good.

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Definitions:

Blindsight

The ability of a person with a lesion in the visual cortex to reach toward or correctly “guess” about objects in the visual field even though the person reports seeing nothing.

Automatization

The process through which tasks become automatic via repeated practice, requiring less conscious thought and effort.

Unconscious

The part of the mind not in current awareness but that influences feelings, thoughts, and behaviors.

Consciousness

Moment-by-moment awareness of ourselves, our thoughts, and our environment.