If Government Uses Taxation to Correct for Negative Externalities, the Desired

question 169

Multiple Choice

If government uses taxation to correct for negative externalities, the desired consequence is

• A)a decrease in the quality of the good produced.
• B)an increase in the quantity of the good produced and/or consumed.
• C)a raise in revenue that can be used to provide subsidies to consumers.
• D)a decrease in the quantity of the good produced and/or consumed.
• E)increased revenue.

---

Definitions:

Dependent Variable

The variable in an experiment that is expected to change or respond as a result of manipulations of the independent variable.

Experimental Treatment

A new or novel intervention or therapy being tested or evaluated for its effectiveness in treating a condition or disease.

Influenced Factor

An element that affects or alters the outcome of a process or situation.

Sexual Arousal

A physiological and psychological state of being awake or reactive to sexual stimuli.