Use the following information to answer the question below.

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.

If the government intervenes and corrects the externality in the situation described above, we would expectA. the output of the paper mills to increase. B. the price of paper from the mills to decrease. C. production of the hydroelectric power plants to decrease. D. production in the paper mills to decrease.

production in the paper mills to decrease.---d

Explanation: The Government intervening means that it will tend to impose a high  tax on the company to solve the externality ie to clean up the river's water

With increase in tax to solve this externality, it will have a negative effect on the equilibrium price for the paper mill which  is the price at which the Paper mill supply matches its consumer demand at a stable price. If sales tax increases for the paper mills company, it will cause increase in the the price of paper, thereby causing  the equilibrium price to fall, which  means that it becomes more difficult for Paper mill to profit from selling goods, or its consumers may change their buying behavior to go for a lesser price else where, making the production at the mills to reduce.

ANSWER --Dproduction in the paper mills to decrease.

panem is a communist totalitarian dictatorship where all the resources and how they are allocated belongs to the capitol. the districts exist only to provide goods and services for the capital and most of the citizens live in poverty. it is a police state where the "peacekeepers" use force and threats to keep the people under control. dissent is outlawed and those who disobey the law are executed, flogged, or turned into avoxes. the games are another means in which the ruling elite in the capitol exert their power over the districts. when reading the books i drew parallels between panem and the soviet union and north korea. in no way is panem capitalist. the people in the capitol are wealthy but the majority of them are involved in the government somehow. it was the same way in the former soviet union where bigwigs in the communist party and high ranking government officials were given access to goods, services, medical treatments not available to the general public. if you think panem has a capitalist economy you need to brush up on your economics.