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a. In view of the fact that sugary pop causes a negative externality by raising medical costs, the government O A. should not prohibit pop

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a. In view of the fact that sugary pop causes a negative externality by raising medical costs, the government O A. should not prohibit pop consumption since it affects the income of pop manufacturers and employment in the industry O B. should prohibit pop consumption because it poses the biggest threat to children's health. O C. should not prohibit pop consumption since the efficient (socially optimum) output of pop is not zero. Price O D. should prohibit pop consumption since the benefits from consuming pop are outweighed by the increase in medical costs b. The government can get pop drinkers to incorporate in their decisions the cost they impose by raising medical costs by D O A. imposing a tax on pop production. O B. giving producers a subsidy for not producing pop Quantity O C. imposing an outright ban on the consumption or production of pop. Edit coordinates (6.33,5.83) O D. imposing a tax on pop consumptionIn a letter to the New York Times, Suzanne Mccarron, an executive at ExxonMobil, argued that a carbon tax would "allow market forces to drive Source: Suzanne Mccarron, "Letter: Exxon Favors a Carbon Tax," New York Times, December 30, 2016. According to Mccarron, what problem would a carbon tax solve? O A. A carbon tax would be an effective way for companies like ExxonMobil to increase profits. O B. By imposing a carbon tax, consumers would not be expected to bear the costs of the tax. O C. It would give firms the freedom and financial incentive to use the least costly means to reduce carbon emissions. O D. Imposing a carbon tax would be an effective way for firms to eliminate pollution. How would a carbon tax allow market forces to "drive solutions"? O A. Firms would have an incentive to develop methods of reducing emissions that would enable them to avoid the tax. O B. A market-based approach, such as a carbon tax, would eliminate the private and social benefits of polluting O C. Carbon taxes would promote private property rights that would allow the market to use resources exclusively. OD. It would increase the amount of government revenue available to spend on cleaning up the environment

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