Multiple Choice
If the government wishes to encourage firms to internalize externalities, they should tax activities resulting in ________ externalities and subsidize activities resulting in ________ externalities.
A) negative; positive
B) positive; negative
C) no; positive
D) negative; no
Correct Answer:
Verified
Correct Answer:
Verified
Q120: Refer to the information provided in Figure
Q121: Refer to the information provided in Figure
Q122: Governments often _ activities that generate external
Q123: It is assumed that the marginal benefit
Q124: Refer to the data provided in
Q126: A positive externality exists when the actions
Q127: Private goods are<br>A) rival in consumption, and
Q128: Refer to the information given in
Q129: If a tax is placed on perfectly
Q130: Public goods are<br>A) rival in consumption, and