When Dealing with Consumption Externalities, Government Can Potentially Correct the Market

Multiple Choice

When dealing with consumption externalities, government can potentially correct the market failure:

A) only in the case of positive consumption externalities
B) only in the case of negative consumption externalities
C) in both the positive and negative cases by inducing market participants to internalise the externality
D) in neither the positive or negative cases because governments can only correct production externalities