When Dealing with Consumption Externalities, the Market Equilibrium Can Be

Multiple Choice

When dealing with consumption externalities, the market equilibrium can be moved closer to the social equilibrium by:

A) taxing negative externalities and subsidising positive externalities
B) taxing both positive and negative externalities
C) subsidising both positive and negative externalities
D) none of the above because government has no corrective policy with regards to consumption externalities