Which of the following represents a way that a government can help the private market to internalize an externality?
a. taxing goods that have negative externalities
b. subsidizing goods that have positive externalities
c. The government cannot improve upon the outcomes of private markets.
d. Both a and b are correct.
d
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Which of the following is a name for when a bank promises to lend funds to a borrower to pay off its commercial paper?
A) loan commitment B) standby letter of credit C) securitization D) loan sale
The first step in the evolution of money involved the use of _____
a. physical commodities b. barter c. pieces of paper representing claims on physical commodities d. pieces of paper with no intrinsic value e. electronic entries representing claims on pieces of paper with no intrinsic value
Marginal revenue can become negative for
a. both competitive and monopoly firms. b. competitive firms but not for monopoly firms. c. monopoly firms but not for competitive firms. d. neither competitive nor monopoly firms.
If a firm is producing where MR < MC
A. the revenue gained by producing one more unit of output equals the cost incurred by doing so. B. the firm is already maximizing profits because revenue is being decreased by more than costs. C. the revenue gained by producing one more unit of output is less than the cost incurred by doing so. D. the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.