Multiple Choice
If the production of a particular good involves significant external costs, what might the government do to force the externality to be internalized?
A) Offer a subsidy for production of the good in order to increase production.
B) Offer a subsidy for production of the good in order to decrease production.
C) Impose a tax on production of the good in order to decrease production.
D) Impose a tax on production of the good in order to increase production.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: A cost that spills over onto individuals
Q75: What is the difference between private and
Q82: Since it is difficult to establish and
Q93: In the absence of government action, why
Q94: What are costs that accrue to the
Q96: If the marginal utility per dollar spent
Q99: If consumers were able to receive the
Q100: Louise loves to eat chocolate. However, every
Q101: Negative externalities lead to an underallocation of
Q103: What are private costs?<br>A) costs borne by