Multiple Choice
One way that government can increase the production of goods that have external benefits is to
A) tax the activity.
B) subsidize the activity.
C) use marketable permits.
D) Both answers B and C are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q235: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above table
Q236: When individuals make decisions about how much
Q237: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" The figure shows
Q238: In which of the following cases does
Q239: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above figure
Q241: Marginal social cost is the<br>A) difference between
Q242: The Coase theorem is the proposition that
Q243: Governments can use subsidies<br>A) as a means
Q244: Why does government provide educational opportunities in
Q245: If an external cost exists, then who