A government decides to impose a tax on the production of sugary beverages, aiming to reduce consumption due to health concerns. Which of the following categories does this action most closely align with regarding its economic implications?

The government's decision to tax sugary beverages is aimed at reducing their consumption because these drinks can lead to health problems like obesity and diabetes. This action aligns with the concept of "negative externalities," which occurs when the production or consumption of a product has harmful effects on society that are not reflected in its price. By imposing a tax, the government increases the cost of sugary drinks, encouraging people to buy less of them and thus improving public health. For example, if a soda that costs $1 now has a $0. 50 tax, consumers might think twice before purchasing it, leading to healthier choices.