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-If the Government Wishes to Correct the Existence of a Negative

Question 23

Multiple Choice

  -If the government wishes to correct the existence of a negative externality, it could A)  grant subsidies to consumers to stimulate demand. B)  impose a tax on the producers to reduce supply. C)  impose taxes on consumers to stimulate demand. D)  grant subsidies to producers to reduce supply.
-If the government wishes to correct the existence of a negative externality, it could


A) grant subsidies to consumers to stimulate demand.
B) impose a tax on the producers to reduce supply.
C) impose taxes on consumers to stimulate demand.
D) grant subsidies to producers to reduce supply.

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