Multiple Choice
To internalize a positive externality, an appropriate public policy response would be to
A) ban the good creating the externality.
B) tax the good.
C) subsidize the good.
D) have the government produce the good until the value of an additional unit is zero.
Correct Answer:

Verified
Correct Answer:
Verified
Q16: Refer to the figure below. This diagram
Q17: A positive externality is an external benefit
Q18: For any given demand curve for pollution,
Q22: Rent seeking best describes where<br>A) individuals or
Q23: The government engages in a technology policy<br>A)
Q24: When an individual buys a car in
Q25: The private benefit of consuming a good
Q26: An externality is<br>A) the benefit that accrues
Q114: Why are Pigovian taxes preferred to regulatory
Q183: The Coase theorem suggests that efficient solutions