Governments Can Try and Correct the Problem of Negative Externalities

question 39

Multiple Choice

Governments can try and correct the problem of negative externalities from smoking by

• A) providing free medical care for smokers.
• B) investing in tobacco companies.
• C) using taxes and fines to reward smoking.
• D) using taxes and fines to penalize smokers.
• E) using subsidies to lower the cost of buying cigarettes.

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Definitions:

Block of Shares

A large number of shares in a company, usually bought or sold in a single transaction.

State Incorporation Statutes

Laws established by individual states that outline the process, requirements, and regulations for the formation of corporations within their jurisdiction.

Perpetual Existence

A characteristic of corporations that allows them to continue existing indefinitely, beyond the lives of their shareholders.

Charitable Donations

Contributions made to charitable organizations or for charitable purposes, often eligible for tax deductions.