Multiple Choice
Which of the following statements is not correct?
A) A patent is a way for the government to encourage the production of a good with technology spillovers.
B) A tax is a way for the government to reduce the production of a good with a negative externality.
C) A tax that accurately reflects social costs produces the socially optimal outcome.
D) Government policies cannot improve upon private market outcomes.
Correct Answer:
Verified
Correct Answer:
Verified
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