If the production of a good creates large spillover benefits on others, the government might correct for the:

a. overallocation of resources to its production by subsidizing it
b. overallocation of resources to its production by imposing a tax on it.
c. underallocation of resources to its production by subsidizing it.
d. underallocation of resources to its production by imposing a tax on it.


c

Economics

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In the figure above, one factor NOT responsible for the decline in the demand for money is

A) a decline the price level. B) a decline in income. C) an increase in income. D) a decline in the expected inflation rate.

Economics

If a third party pays for an individual to consume a good, how is the decision making of consumers affected? How does this affect the actions of suppliers?

Economics

Why is collusion more likely in cases of oligopoly than in perfect competition?

a. In oligopoly, all firms sell an identical product; but in perfect competition, the product varies between producers. b. There are too many firms in perfect competition to allow for collusion. c. Oligopoly moves towards an equilibrium outcome; perfect competition does not. d. Perfect competition moves toward an equilibrium outcome; oligopoly does not

Economics

When the government provides loan guarantees and in effect "socializes losses and privatizes gains" of a project or firm, it can lead to a

What will be an ideal response?

Economics