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:

Buyer and Supplier

The relationship between entities that purchase goods or services and those that supply or provide them.

Reverse Logistics

The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.

Communication

The process of transferring information, ideas, emotions, skills, and knowledge from one entity to another through various means.

Order Cycle Time

The total time taken from when a customer places an order until the product is delivered to them.