Multiple Choice
When a positive externality is present in a market, the imposition of a government subsidy will:
A) increase surplus.
B) increase efficiency.
C) make consumers internalize the external benefit.
D) All of these are true.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q68: If the social benefit is greater than
Q69: An example of a Pigovian tax would
Q70: When we add private benefits and external
Q71: When negative externalities are present in a
Q72: Which of the following is a good
Q74: A market with a negative externality has
Q75: If the government were to restrict consumption
Q76: If the government's provision of a subsidy
Q77: What tool can a government use to
Q78: Correcting a market with an externality through