Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any CAPITALIZED term.  1. The government can internalize externalities by taxing goods that have positive externalities and subsidizing goods that have NEGATIVE EXTERNALITIES.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
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Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any CAPITALIZED term. 

1. The government can internalize externalities by taxing goods that have positive externalities and subsidizing goods that have NEGATIVE EXTERNALITIES.

 

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