The government can act to internalize externalities by taxing ...

[APUS57]

The government can act to internalize externalities by taxing goods that have negative externalities and subsidizing goods that have positive externalities.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the economy has substantial unemployment, then the inflationary costs of expansionary policy are likely to be:
 a. low, and the unemployment gains minimal.
  b. low, and the unemployment gains large.
 c. high, and the unemployment gains minimal.
  d. high, and the unemployment gains large.

[dominiqueenicolee]

Answer to Question 1

True

Answer to Question 2

b

[APUS57]

Thank you

[dominiqueenicolee]

No problemo