In the Case of a Negative Externality,the Government Can Use

question 30

Multiple Choice

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

• A) tax; subsidy
• B) subsidy; tax
• C) tax; tax
• D) subsidy; subsidy

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Definitions:

Political Cultures

The deeply rooted norms, values, beliefs, and attitudes that define the relationship between citizens and government within a political system.

Individual Mandate

A requirement that individuals must obtain health insurance or face penalties, aimed at broadening the pool of insured and lowering health insurance costs.

Health Care Insurance

A system that covers or reimburses medical expenses for individuals, spreading the financial risk of health costs across a large group of people.

Federal Government

The United States' national government consists of three distinct branches: the legislative, the executive, and the judicial.