Which of the Following Is True

Multiple Choice

Which of the following is true?

A) If the consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good.
B) If the production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good.
C) If the production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good.
D) If the consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.