Multiple Choice
Table 10-4
-Refer to Table 10-4. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium?
A) a tax of $4 per unit of output
B) a subsidy of $4 per unit of output
C) a tax of $6 per unit of output
D) a subsidy of $6 per unit of output
Correct Answer:

Verified
Correct Answer:
Verified
Q72: The Coase theorem suggests that taxes should
Q81: To produce honey, beekeepers place hives of
Q210: Figure 10-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 10-11
Q213: When the government uses a command-and-control policy
Q214: When negative externalities are present in a
Q216: Industrial policy aims to<br>A)reduce pollution by requiring
Q217: Negative externalities occur when one person's actions<br>A)cause
Q218: Figure 10-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 10-9
Q219: Suppose that beef producers create a negative
Q220: A positive externality arises when a person