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Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate ...

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Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate ...

Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause

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the external cost to drinking soda to become a private cost paid by the government.

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producers to internalize the externality.

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the external cost to drinking soda to become a private cost paid by producers.

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consumers to internalize the externality.

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InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

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rizumidancer Author

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Correct

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