Which of the Following Represents a Way That a Government

question 202

Multiple Choice

Which of the following represents a way that a government can help the private market to internalize an externality?

• A)taxing goods that have negative externalities
• B)subsidizing goods that have positive externalities
• C)The government cannot improve upon the outcomes of private markets.
• D)Both a and b are correct.

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Definitions:

Unconstitutional

Describes actions or laws that are not in accordance with the constitution of a given jurisdiction.

Regional Trade Agreements

Treaties between countries in the same region to reduce trade barriers and promote economic cooperation.

Trade Barriers

Measures implemented by a government to restrict or control international trade, including tariffs, quotas, and embargoes.

Normal Trade Relations

A status granted by one country to another in international trade, ensuring equal treatment in terms of import duties and tariffs.