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.

Identify and explain cognitive processes, including perception, memory, and mental activities.

Grasp language acquisition, bilingualism, and linguistic theories.

Understand the role of heritability in psychological traits.

Recognize the significance of creativity and strategies to enhance it.

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Definitions:

Marginal Cost

The expenditure involved in the production of one extra unit of a product.

Marginal Cost

The sum required to produce an extra unit of a product or service.

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output, such as labor hours or raw materials.

Marginal Cost

The investment required to manufacture one more unit of a product or service.