Final answer:
A government policy that corrects for a negative externality often involves placing a cost on the negative externalities. Examples include taxes on alcohol, gasoline, and tobacco. Subsidies, on the other hand, are usually given to encourage positive externalities such as vaccinations.
option d is the correct
Step-by-step explanation:
The question addresses which government policy is expected to correct for a negative externality. Neither an income progressive tax nor a subsidy for the irrational use of public goods directly addresses correcting a negative externality. A negative externality occurs when an action results in harmful effects that are not accounted for by the market. To correct a negative externality, a government policy usually entails putting a cost on the negative externalities, such as taxes on alcohol, gasoline, and tobacco, which creates incentives to reduce those harmful effects.
An example of a government policy to correct a negative externality would be placing a carbon tax on energy sources that emit greenhouse gases into the atmosphere, thereby incentivizing individuals and companies to lower their emissions. This is a form of regulatory policy which aligns the private cost with the social cost of the externality. In contrast, subsidies are more commonly used to promote actions with positive externalities, such as vaccinations or investments in new technologies.