A new law passed in Bonland requires all bikers to wear helmets while riding. It also states that those who do not wear helmets while riding will be punished. This law is likely to lead to a(n) ________.
A) decrease in government expenditure
B) increase in government expenditure
C) decrease in tax rates
D) increase in the overall price level
Question 2
Which of the following can give rise to a negative externality?
A) Smoking a cigarette
B) Planting a tree
C) Consuming vegetarian food
D) Working for long hours
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