In Order to Encourage Consumption of a Good That Generates

Multiple Choice

In order to encourage consumption of a good that generates positive externalities, policymakers would:

A) impose a tax on the amount consumed in order to achieve the socially optimal level.
B) mandate consumption of the good at the socially optimal level.
C) provide a subsidy per unit of the good consumed in order to achieve the socially optimal level.
D) do nothing, since the market will achieve the socially optimal level without government intervention.