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:

Temperature Extremes

Conditions or environments where the temperature is significantly higher or lower than the normal living conditions for humans or certain organisms.

Disaccharide Molecule

A carbohydrate made up of two monosaccharides (simple sugars) bonded together, such as sucrose, lactose, or maltose.

Glucose

A simple sugar that is an important source of energy in living organisms and is a component of many carbohydrates.

Dehydration Reaction

Chemical reaction in which a water molecule is released during the formation of a covalent bond.