The government might provide a subsidy when
A) a negative externality exists.
B) an effluent fee has been unsuccessful.
C) it wants to increase the amount of a good consumed.
D) it wants to transform a negative externality into a positive externality.
Answer: C
You might also like to view...
If Apple, a company that produces smartphones, purchases a company that specializes in developing phone apps, we would have an example of
A. a vertical merger. B. a monopoly. C. a horizontal merger. D. excessive product differentiation.
Which of the following phenomena cannot be explained by the simple comparative advantage theory?
A. A country with a lot of skilled labor tends to export highly technical goods. B. A country that does not have much farmland tends to import agricultural goods. C. A country imports and exports the same goods. D. A country tends to export the goods that it can produce at a lower opportunity cost.
Refer to the data. Personal income is:
A. $229.
B. $253.
C. $274.
D. $243.
Other things the same, if a country raises its saving rate, then in the long run
a. both the level and growth rate of real GDP are unchanged. b. the level of real GDP is higher but the growth rate of real GDP is unchanged. c. both the level and growth rate of real GDP are higher. d. None of the above are correct.