Asked by Oscar Zamora on Jul 30, 2024
Verified
When the government pays for childhood vaccinations, it is
A) internalizing an external cost.
B) using taxes to discourage an external cost.
C) subsidizing an external benefit.
D) using direct regulation to discourage an external cost.
Subsidizing
The act of providing financial support by the government to lower the cost of producing goods or services, often to encourage production or consumption.
External Benefit
A positive effect or advantage that extends beyond the direct parties involved in a transaction, affecting others who are not directly involved.
Childhood Vaccinations
Immunization shots given to children to protect them from serious diseases by building immunity.
- Determine the function of taxation, subsidies, and regulatory measures by the government in mitigating external costs and benefits linked to production.
Verified Answer
Learning Objectives
- Determine the function of taxation, subsidies, and regulatory measures by the government in mitigating external costs and benefits linked to production.
Related questions
If a Tax Is Placed on Perfectly Competitive Firms That ...
Taxes on a Producing Firm's ________ Are Meant to Force ...
If a Subsidy Is Granted to Perfectly Competitive Firms That ...
If the Production of a Good Generates External ________, the ...
Assuming No Externalities Exist, If a Good's Price Is More ...