Some Policymakers Have Argue That Products Like Cigarettes, Alcohol, and Sweetened

question 101

Multiple Choice

Some policymakers have argue that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause

• A) consumers to internalize the externality.
• B) producers to internalize the externality.
• C) the external cost to drinking soda to become a private cost paid by the government.
• D) the external cost to drinking soda to become a private cost paid by producers.

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Definitions:

Trade Name

The commercial, registered name under which a company does business or markets a specific product, as opposed to its generic or chemical name.

Public Places

Locations that are open and accessible to the general population, such as parks, streets, and public squares.

Fear

An emotional response to perceived threats or danger, characterized by feelings of anxiety and apprehension.

Public Places

Areas openly accessible to people within a community, including parks, shopping centers, and streets.