A Society Can Sometimes Alleviate Problems Caused by Externalities by

question 176

Multiple Choice

A society can sometimes alleviate problems caused by externalities by

• A)having the government produce the good or service.
• B)using tax revenues to subsidize the firm causing the negative externality.
• C)using government expenditures to penalize the firm causing the positive externality.
• D)doing nothing.
• E)prohibiting the production of externalities.

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Definitions:

Pain

An unpleasant sensation and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Lactulose Solution

A synthetic sugar solution used as a medication to treat constipation and hepatic encephalopathy.

Constipation

A condition characterized by difficulty in passing stool or an infrequent passage of hard stool.

PO

Latin term "per os" used in prescriptions, indicating that the medication is to be taken orally.