Multiple Choice
When positive externalities exist, the government must _________ the production of the good generating the externalities in order to achieve ___________.
A) allow the market to dictate; a socially optimal allocation of resources
B) tax; a socially optimal allocation of resources
C) subsidize; a socially optimal allocation of resources
D) subsidize; market equilibrium
E) tax; market equilibrium
Correct Answer:
Verified
Correct Answer:
Verified
Q158: Which of the following is an example
Q159: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -Exhibit N-4 represents
Q160: If it costs $2,000 to pick up
Q161: When a negative externality creates a market
Q162: The socially optimal quantity of a public
Q164: The automobile emission standards in the United
Q165: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -Exhibit N-5 depicts
Q166: In cases where negative externalities are present,
Q167: A principal idea associated with public choice
Q168: Equating society's marginal benefits with marginal costs