Question

19. If government uses taxation to correct for negative externalities, the desired consequence is a, a decrease in the quality of the good produced. b. an increase in the quantity of the good produced and consumed. c. a raise in revenue that can be used to provide subsidies to consumers. d. a decrease in the quantity of the good produced and consumed. e. increased revenue. 20. Which of the following is most likely to involve a negative externality? a. A can of soda b. Research c. A university d. An interstate highway e. A hospital 21. If the price of a good increases, other things held constant, then a. more resources might flow into the production of the good. b. the good has become less scarce than all other goods. c. the relative price of the good decreases. d. either buyers or sellers respond to the new price, whereas the opposite group does not. e. the good becomes more desirable to consumers. 22. When a negative externality exists in the production of a good, a. an appropriate policy would result in an increase in the output of the good. b. an appropriate policy would result in a decrease in the price of the good. c. a tax on the production of that good could correct for the externality. d. government could correct the externality by shifting the good's supply curve to the right, e. subsidizing the production of the good could correct for the externality.
please give all the answers. dont need explanation too much

Answer 1

19) If the government uses taxation to correct for neagative externalities, the desired consequence is

d) a decrease in the quantity of goods produced and consumed as it increase the cost to the producer.

20) Which of the following is most likely to involve a negative externality?

   a) a can of soda as it leads to strain on healthcare services from obesity-related diseases, such as diabetes, as well as reductions in labour productivity and rising sickness absenteeism for firms.

21) If the price of a good increase, other things held constant, then

   a) more resources might flow into the production of the good as more revenue is earned by the producer.

22) When a negative externality exists in the production of a good,

   c) a tax on the production of that good could correct for the externality as it increase the cost of production leading to less production of that good.