A Negative Externality Such as Pollution Can Be Corrected by

question 54

Multiple Choice

A negative externality such as pollution can be corrected by

• A) a subsidy to producers.
• B) a tax on producers.
• C) a subsidy to consumers.
• D) a stimulus to production.

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Definitions:

Government

The governing body of a nation, state, or community which is responsible for making and enforcing laws and managing public resources and affairs.

Rationing Mechanism

a system or policy by which scarce goods or services are distributed.

Market Economies

Market economies are economic systems in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses with minimal government intervention.

Adjustment

The process of modifying something to achieve a desired outcome, often used in the context of economic policies, mechanisms, or personal changes.