What Would Happen If the Government Tries to Internalize an Externality,generated

question 5

Multiple Choice

What would happen if the government tries to internalize an externality,generated from the production of a commodity,through taxation?

• A)The commodity will be overproduced
• B)The commodity will definitely be underproduced
• C)The market level of output will coincide with the efficient level
• D)The price of the commodity will decline

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Definitions:

Carl Rogers

A prominent psychologist known for developing client-centered therapy and emphasizing the importance of unconditional positive regard.

How Did That Make

This does not appear to represent a recognized key term within psychological or scientific disciplines.

William James

An American philosopher and psychologist, often referred to as the father of American psychology, who was a leading thinker of the late nineteenth century.

Feel

To experience a sensation, emotion, or a certain way of perceiving something.