To Correct for Negative Externalities, the Government

question 21

Multiple Choice

To correct for negative externalities, the government

• A) should allow the price system do the correction.
• B) can impose a tax.
• C) can provide a subsidy to consumers.
• D) should create a public good.

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Definitions:

Mission

The core purpose or goal that guides an individual, organization, or group, providing a sense of direction and focus.

Costs and Benefits

An analysis or consideration of the expenses associated with an action versus the advantages gained from that action.

Agency Staff

Workers or personnel employed through or by a staffing agency, often for temporary or contract positions.

Community

A community is a group of individuals who share common interests, values, or geographical location, and interact with each other to fulfill mutual needs.