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:

Theta Waves

Brainwave patterns associated with stages 1 and 2 of sleep, characterized by lower frequency and higher amplitude, and often linked to creativity and emotional processing.

Stage 1 Sleep

The initial stage of the sleep cycle, characterized by light sleep, easy awakenings, and a reduction in bodily movement and heart rate.

Brain Wave Activity

The patterns of electrical signals from the brain, commonly measured by EEG, indicating different states of arousal and consciousness.

Higher Amplitude

Refers to waves with greater energy and intensity, typically seen in contexts like sound, light, or brain activity measurements.