Multiple Choice
Suppose a company is forced to pay for the externality caused by its production. As a result, it chooses to supply less. What kind of externality does this company create?
A) Positive
B) Negative
C) Network
D) Social
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The Coase theorem reminds us that efficiency
Q9: When private benefits are less than social
Q10: Pigovian taxes are not always effective because
Q11: A Pigovian tax will _ the price
Q12: Correcting the externality that is present in
Q14: The government offers subsidies to offset _
Q15: All externalities:<br>A)are harmful to society and create
Q16: A production or consumption quota that can
Q17: A positive externality is a(n):<br>A)external benefit.<br>B)external cost
Q18: A benefit that accrues without compensation to