Government Can Deal with Externalities Through the Use of Taxes

question 156

True/False

Government can deal with externalities through the use of taxes and subsidies.

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Definitions:

Greenhouse Gas

Gases in Earth's atmosphere that trap heat, including carbon dioxide, methane, nitrous oxide, and fluorinated gases, contributing to global warming.

Methane

A colorless, odorless flammable gas that is the simplest alkane and a major component of natural gas, contributing to greenhouse gas emissions.

Deforestation

The large-scale removal of trees from forests or woodlands, often resulting in loss of biodiversity and environmental disruption.

Habitat

The natural environment in which an organism lives, grows, and thrives, including all living and non-living factors.