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:

Accounting Information System

A system of collecting, storing, and processing financial and accounting data used by decision makers.

Data Collection

The process of gathering and measuring information on variables of interest in an established systematic fashion, enabling one to answer stated research questions.

Information Dissemination

The process of distributing or spreading information to a wide audience, often used in contexts of marketing, public relations, and information technology.

Control Accounts

General ledger accounts that consolidate and summarize the detailed information from subsidiary ledgers.