Government Can Internalize Externalities by

question 91

Multiple Choice

Government can internalize externalities by

• A)taxing goods with negative externalities and subsidizing goods with positive externalities.
• B)taxing goods with positive externalities and subsidizing goods with negative externalities.
• C)taxing goods with either positive or negative externalities.
• D)subsidizing goods with either positive or negative externalities.
• E)letting private markets determine output levels.

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Definitions:

Hallucinations

Perceptual experiences that appear real but are created by the mind, often occurring without an external stimulus.

Penicillin Production

The industrial process of producing the antibiotic penicillin, originally derived from Penicillium fungi, to combat bacterial infections.

Cheese Flavoring

Substances added to cheese or cheese products to enhance or alter flavor, which can include natural enzymes, bacterial cultures, or artificial compounds.

Soybean Fermentation

A process involving the breakdown of soybeans by microorganisms or enzymes, resulting in products like soy sauce and tempeh.