In the Case of a Negative Externality,the Government Can Use

Multiple Choice

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

A) tax; subsidy
B) subsidy; tax
C) tax; tax
D) subsidy; subsidy