Suppose That the Consumption of a Good Involves a Positive

Multiple Choice

Suppose that the consumption of a good involves a positive externality. Which of the following actions by the government can lead to the purchase of a socially optimal quantity?

A) imposing a tax on the purchase of the good
B) passing a regulation that makes people buy a minimum amount of the good
C) imposing a tax on the production of the good
D) passing a regulation that puts a quota on the amount that people can buy