If Government Uses Taxation to Correct for Negative Externalities, the Desired

Multiple Choice

If government uses taxation to correct for negative externalities, the desired consequence is

A) a decrease in the quality of the good produced.
B) an increase in the quantity of the good produced and/or consumed.
C) a raise in revenue that can be used to provide subsidies to consumers.
D) a decrease in the quantity of the good produced and/or consumed.
E) increased revenue.