To Internalize a Positive Externality

question 105

Multiple Choice

To internalize a positive externality:

• A)​the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good.
• B)​a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good.
• C)​consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good.
• D)​None of the above are correct.

---

Definitions:

Child Care Activities

Tasks and responsibilities involved in the care and supervision of children, often including educational, recreational, and basic needs fulfillment.

Healthy Marriage

A marital relationship characterized by mutual respect, communication, affection, and a healthy conflict resolution.

Similar Personalities

The phenomenon where individuals share common traits, behaviors, or attitudes, leading to potential compatibility or understanding.

Romantic Love

A profound, emotional attachment towards someone that encompasses affection, attraction, and a desire for a close intimate relationship.