Which of the following is true?

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

B

Economics

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A Nash equilibrium is defined as

A) earning zero economic profit in the long run. B) forming a cartel with strong penalties for cheaters. C) relying on other game players to realize the benefit of cooperation. D) each player taking the best possible action given the action of the other player. E) each player taking the action that is best for all the players.

Economics

How does the Ultimatum Game work? What does experimental evidence show about the outcome of the Ultimatum game?

What will be an ideal response?

Economics