In the presence of a positive externality, public policy aims to increase quantity beyond the private optimum
Indicate whether the statement is true or false
true
You might also like to view...
A good for which demand decreases when income decreases is known as a(n) ________ good
A) normal B) inferior C) complementary D) substitute
What happens to the likelihood of a volunteer being found as the group of potential volunteers grows if the diffusion effect is greater than the size effect?
What will be an ideal response?
The unemployment compensation program:
a. makes recessions more severe. b. makes recession less severe. c. makes recessions more severe and inflationary episodes less severe. d. makes recessions less severe and inflationary episodes more severe. e. has no effect on the severity of recessions and inflationary episodes.
The Lewis two sector model
a. Explains rapid growth in Asia b. Says that excess labor in agriculture can be used as a source of growth c. transfers a surplus from the traditional to the modern sector d. All of the above e. None of the above