One way of addressing the associated market failure that generates both private costs and external costs is for this activity to be
A) left alone.
B) taxed.
C) subsidized.
D) banned.
Answer: B
You might also like to view...
Does a subsidy to buyers affect the supply curve?
A. Yes, it shifts supply up by the amount of the subsidy. B. Yes, it shifts supply to the right by the amount of the subsidy. C. No, the quantity supplied will increase, but the supply curve does not move. D. No, the quantity supplied will decrease, but the supply curve does not move.
Currently, total government expenditures in the United States:
a. are close to 40 percent of GDP. b. fell by half, to 10 percent of GDP. c. nearly doubled to about 60 percent of GDP. d. nearly tripled to about 60 percent of GDP.
"Economics is the study of how people eliminate scarcity." Do you agree or disagree? Why?
What will be an ideal response?
People demand money for all of the following reasons EXCEPT
A) it generates a rate of return. B) it is a medium of exchange to make payments. C) it is a store of value. D) it can meet unplanned expenditures.