If an Activity Generates a Positive Externality,the Government Can Make

question 106

Multiple Choice

If an activity generates a positive externality,the government can make provision of that activity more efficient by _____,and if an activity generates a negative externality,the government can make provision of that activity more efficient by _____.

• A)taxing it;banning it
• B)subsidizing it;banning it
• C)subsidizing it;taxing it
• D)publicizing it;taxing it

---

Definitions:

Debtor's Property

Assets or properties owned by an individual or entity that owes money to creditors.

Mechanic

A skilled worker who repairs and maintains machinery, equipment, or vehicles.

Music Room

A dedicated space designed for the practice, composition, and enjoyment of music, often equipped with musical instruments and sound-proofing.

Lien

A legal right or claim against a property by a creditor, securing the payment of a debt or the performance of some obligation.