Governments can increase the consumption of a product that creates positive externalities by
A) subsidizing the production of the product so that the supply is increased and market price is reduced.
B) taxing the production and consumption of the product.
C) convincing everyone to consume the product.
D) assigning property rights to the producers of the product.
Answer: A
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A) exceed; above the efficient quantity B) exceed; below the efficient quantity C) be below; above the efficient quantity D) be below; below the efficient quantity E) equal; efficient
A tax, in which amounts transferred as gifts and bequests are jointly taken into account, is known as
A. inheritance tax. B. death tax. C. accessions tax. D. unified transfer tax.
Other things being equal, how would the market for bicycles be affected by an increase in the availability and number of bicycle paths?
a. An increase in prices and a decrease in the quantity exchanged b. An increase in prices and an increase in the quantity exchanged c. A decrease in prices and a decrease in the quantity exchanged d. A decrease in prices and an increase in the quantity exchanged
Which of the following can be analyzed using microeconomic models?
A) economic growth B) a country's international trade pattern C) a firm's output level decision D) determinants of money supply