Each of the Following Provides Incentives to Reduce a Negative

question 16

Multiple Choice

Each of the following provides incentives to reduce a negative externality except:

• A)a merger with affected firms.
• B)subsidizing consumption of the good being produced.
• C)bargaining among firms.
• D)taxation of the externality.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Variable

An element, feature, or factor that is liable to vary or change; used in statistics and research to measure and analyze differences.

Laboratory Experiments

Laboratory experiments are a method of research in a controlled environment where variables can be manipulated to test hypotheses and observe the outcomes.

Secondary Analysis

An examination of data that have been collected by someone else.