A Government Action That Can Help Correct Positive Externalities Is

question 246

Multiple Choice

A government action that can help correct positive externalities is

• A) a tax on producers of the good that provides external benefits.
• B) a subsidy to consumers of the good that provides external benefits.
• C) an effluent fee charged to producers of the good that provides external benefits.
• D) regulations aimed at reduced production by sellers of the good that provides external benefits.

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Definitions:

CAM Plant

Plant that carries out crassulacean acid metabolism; carbon is initially fixed into organic acids at night in the reaction of CO2 and phosphoenolpyruvate, catalyzed by PEP carboxylase; during the day the acids break down to yield CO2, which enters the Calvin cycle. Compare with C3 plant and C4 plant.

Calvin Cycle

A series of biochemical redox reactions that take place in the stroma of chloroplasts in photosynthetic organisms and is a light-independent reaction.

Carbohydrate

Organic compounds consisting of carbon, hydrogen, and oxygen, typically in a ratio of 1:2:1, serving as a major energy source for the body.

RuBP

Ribulose bisphosphate, a molecule that plays a crucial role in the carbon fixation phase of photosynthesis.