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Refer to the Figure Below

Question 9

Multiple Choice

Refer to the figure below. To correct the externality problem, the government could Refer to the figure below. To correct the externality problem, the government could A) provide a subsidy for the good. B) impose a tax on the good. C) produce the good itself. D) provide more incentives for producers to produce more. E) encourage buyers to buy more of the good.


A) provide a subsidy for the good.
B) impose a tax on the good.
C) produce the good itself.
D) provide more incentives for producers to produce more.
E) encourage buyers to buy more of the good.

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