When Government Intervenes in the Production Process Because External Benefits

question 66

Multiple Choice

When government intervenes in the production process because external benefits exist, it typically attempts

• A) to impose a tax on each unit produced.
• B) to shift the market's demand curve to the left.
• C) to shift the market's demand curve to the right.
• D) to shift the market's supply curve to the left.

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Definitions:

Categorical

Pertaining to absolute and unconditional statements or classifications.

Ethical

Relating to morals, focusing on right and wrong conduct.

Categorical Imperative

A central concept in the ethical philosophy of Immanuel Kant, stating that one should act only according to that maxim whereby you can, at the same time, will that it should become a universal law.

Motives of Vanity

The driving factors behind actions that are primarily focused on excessive pride in one's appearance or achievements.