The government would use production taxes to remedy the problem of substantial:

Question

Quizplus · Accepted Answer

Production taxes are levied on producers to address the issue of external costs of production. These external costs refer to the negative impact that a producer's activity can have on society, such as pollution or traffic congestion. By imposing a tax on producers based on their level of production, the government can reduce the negative externalities associated with that production activity. This increases the cost of production, making producers more likely to reduce their levels of production, which in turn reduces the negative externalities.

The Government Would Use Production Taxes to Remedy the Problem