All of the following are ways that the government can correct for positive externalities EXCEPT
A. producing the good itself.
B. by assessing an effluent fee.
C. by regulation.
D. by subsidizing the consumption of the good.
Answer: B
You might also like to view...
The income elasticity of demand for food
A) does not change when an individual's income changes. B) increases as an individual's income increases. C) decreases as an individual's income increases. D) is negative.
In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity. B) consumers to satisfy all their wants. C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange. D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
In a perfectly competitive market, positive economic profits act to
A) attract new entrants into the industry. B) drive potential competitors away from the industry. C) prevent reinvestment on the part of firms within the industry. D) signal resource owners elsewhere not to invest their capital in this industry.
How does a tax on labor income influence the equilibrium quantity of employment?
What will be an ideal response?