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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    Table 10-4 -Refer to Table 10-4. Which of the Following Policies Would
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Table 10-4 -Refer to Table 10-4. Which of the Following Policies Would

Question 215

Question 215

Multiple Choice

Table 10-4 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
-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

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