Governments Can Increase the Consumption of a Product That Creates

question 55

Multiple Choice

Governments can increase the consumption of a product that creates positive externalities by

• A)subsidising the production of the product so that the supply is increased and market price is reduced.
• B)taxing the production and consumption of the product.
• C)convincing everyone to consume the good.
• D)assigning property rights to the producers of the product.

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Definitions:

Advertisers

Organizations or individuals that pay to display advertisements in order to promote goods, services, or ideas to potential customers.

Ethical Issue

A situation or problem requiring individuals or organizations to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Actions Taken

The measures or steps implemented in response to a situation or problem.

Responsibility

A tenet of ethics in which you accept the consequences of your decisions and actions.