To correct for the underproduction of products with positive externalities, the government must
A) provide the incentives for the private sector to produce and consume the good.
B) provide tougher regulations on the industry.
C) increase taxes on the industry.
D) fine the industry.
Answer: A
You might also like to view...
As long as debt grows by the same percentage as nominal GDP, the debt-to-GDP ratio will stay constant but the interest payments-to-GDP ratio will increase
a. True b. False
Which of the following are among the effects of CFC usage?
a. increased cases of skin cancer c. urban smog b. acidification of surface waters d. all of the above
At an output of zero, total cost is
A. zero. B. equal to fixed cost. C. equal to variable cost. D. cannot be found.
For a monopoly to be a natural monopoly,
A. the long-run average cost curve must continue to increase until it hits the market demand curve. B. economies of scale must be realized at a scale that is close to total demand in the market. C. economies of scale must be realized at a scale that is small relative to the market. D. there must be constant returns to scale.