If the production of a product results in significant external ...

[cabate]

If the production of a product results in significant external costs, an appropriate government policy might be to
 
  A) subsidize the production of the good.
  B) tax producers and thus shift the supply curve to the left.
  C) tax consumers' incomes and thus shift the demand curve to the left.
  D) subsidize consumers since the good is being under-consumed.

Question 2

The Social Security tax is considered to be a
 
  A) regressive tax.
  B) progressive tax.
  C) proportional tax.
  D) marginal tax.

[Chelseyj.hasty]

Answer to Question 1

B

Answer to Question 2

A