Multiple Choice
Which of the following actions can help eliminate the deadweight loss that results from positive externalities?
A) taxing the purchase of the good
B) providing subsidies for the purchase of the good
C) rationing the amount of the good that can be supplied
D) buying insurance along with the purchase of the good
Correct Answer:
Verified
Correct Answer:
Verified
Q7: If the marginal private benefit from consuming
Q8: If Raj buys car insurance and then
Q9: Use Figure: Positive Externalities and Deadweight Loss.
Q10: Because public goods are both nonrival and
Q11: Which of the following statements is TRUE?<br>A)
Q13: The marginal private cost of producing a
Q14: If the marginal external cost of producing
Q15: Desirable effects that are felt by people
Q16: It is widely known that the marginal
Q17: Suppose that the purchase of a good