Assume the Production of a Good Gives Rise to External

question 107

Multiple Choice

Assume the production of a good gives rise to external benefits. The government may increase efficiency by

• A) subsidizing consumption of the good.
• B) requiring all producers of the good to be licensed.
• C) taxing production of the good.
• D) imposing taxes on the good.

---

Definitions:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions for the development, functioning, and reproduction of all living organisms.

Genes

Segments of DNA located on chromosomes that contain the instructions for the production of proteins, playing a key role in determining the characteristics of an organism and its mode of inheritance.

Lanugo

Fine, downlike covering of the fetus.

Fetus

A fetus refers to a developing mammal or human after the embryonic stage and before birth, characterized by rapid growth and the formation of body structures.