Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except
A. subsidizing the buyers of the product.
B. subsidizing the sellers of the product.
C. taxing the sellers of the product.
D. providing the product itself.
Answer: C
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Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. The reduction in the supply of Florida citrus fruit would tend to
A) shift the supply curve for Florida citrus fruit down and to the right. B) increase the price of Florida citrus fruit. C) increase the supply of California citrus fruit. D) decrease the price of California citrus fruit.
The circular flow shows that the household sector earns its income by
A) selling factors of production. B) buying factors of production. C) selling goods and services. D) selling financial assets.
If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:
A. price taker. B. monopolist. C. profit maximizer. D. perfect competitor.
When there are just a few firms in the industry, the industry structure is most likely to be:
A. a perfectly competitive industry. B. an oligopoly market. C. a monopoly market. D. a natural monopoly market.