In order to achieve the socially optimal level of output, goods that entail negative externalities should be:
A)banned.
B)subsidized.
C)taxed.
D)provided by the government.

Name: In order to achieve the socially optimal level of output, goods that entail negative externalities should be: A)banned. B)subsidized. C)taxed. D)provided by the government.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

Taxing activities that yield negative externalities forces the generator of the externality to explicitly account for the external cost imposed on others.

In Order to Achieve the Socially Optimal Level of Output