When a Negative Externality Exists in the Production of a Good

Multiple Choice

When a negative externality exists in the production of a good,

A) an appropriate policy would result in an increase in the output of the good.
B) an appropriate policy would result in a decrease in the price of the good.
C) a tax on the production of that good could correct for the externality.
D) government could correct the externality by shifting the good's supply curve to the right.
E) subsidizing the production of the good could correct for the externality.