Which Action Should Government Take in Order to Internalize Externalities

Multiple Choice

Which action should government take in order to internalize externalities

A) Government should tax goods with negative externalities and subsidize goods with positive externalities.
B) Government should tax goods with either positive or negative externalities.
C) Government should subsidize goods with either positive or negative externalities.
D) Government should tax goods with positive externalities and subsidize goods with negative externalities.