One Way to Make Consumers Take a Positive Externality into Account

question 18

Multiple Choice

One way to make consumers take a positive externality into account in their demand decision is to:

• A) place a tax on the item.
• B) subsidize the purchase of the item.
• C) tax the producers of the item.
• D) None of these statements is true.

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Definitions:

Spatial Awareness

The awareness of the body's position and movement in space, crucial for coordination and navigation.

Warner Schaie

A psychologist known for his work in the field of adult development, particularly for his studies on cognitive aging.

Middle Adulthood

The period in an individual's life, often defined as between 40 to 65 years of age, characterized by stability, maturity, and increasing concern with contributing to society.

Presbyopia

A vision condition where the aging eye loses its ability to focus on close objects clearly, commonly occurring in middle and older age.