Government can correct for negative externalities by
A. increasing taxes or regulation.
B. decreasing the costs to those responsible for the externality.
C. decreasing taxes.
D. allowing the market system to correct the problem.
Answer: A
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Refer to Figure 23-1. If the economy is at point L, what will happen?
A) Inventories have risen above their desired level, and firms decrease production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have fallen below their desired level, and firms increase production. D) Inventories have fallen below their desired level, and firms decrease production.
Briefly and concisely define the following terms and explain their relevance to the study of economics. a. industrial and craft unions b. closed shop c. union shop d. bilateral monopoly e. collective-bargaining agreement
What will be an ideal response?
If the capital stock decreases, then the economy will produce ____ output with the ____ amount of labor.
A. same, same B. less, same C. more, same D. more, decreased
Like Franklin D. Roosevelt (1933–45), William J. Clinton's (1993–2001) deficit-reducing tax hikes pushed the economy into a recession
Indicate whether the statement is true or false