Multiple Choice
Which of the following policies is government most inclined to use when faced with a positive externality?
A) taxation
B) permits
C) subsidies
D) usage fees
Correct Answer:

Verified
Correct Answer:
Verified
Q38: Graph 10-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 10-3
Q39: Graph 10-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 10-4
Q40: Graph 10-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 10-3
Q41: Government can internalise an externality by taxing
Q42: What is the Coase theorem? What are
Q44: If the consumption of bananas is at
Q45: When a producer operates in a market
Q46: Graph 10-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 10-5
Q47: Private contracts between parties with mutual interests:<br>A)can
Q48: Contracts cannot solve the inefficiency that arises