Some Policymakers Have Argue That Products Like Cigarettes, Alcohol, and Sweetened

question 101

Multiple Choice

Some policymakers have argue that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause

• A) consumers to internalize the externality.
• B) producers to internalize the externality.
• C) the external cost to drinking soda to become a private cost paid by the government.
• D) the external cost to drinking soda to become a private cost paid by producers.

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Definitions:

Total Fixed Cost

The sum of all costs that do not change with the level of output produced, such as rent, salaries, and insurance.

Patient-Visits

A measure in healthcare indicating the number of individual patient interactions or consultations with healthcare professionals.

Personnel Expenses

Costs associated with employing personnel, including salaries, benefits, and payroll taxes.

Planning Budget

A budget prepared before the beginning of a financial period as a plan for earning and spending, based on expected activities and conditions.