Which of the following is a possible government solution to the problem posed by a good with an external benefit?
A) Give a voucher to buyers of the good.
B) Tax the consumption of the good.
C) Tax the production of the good.
D) All of the above are possible solutions.
A
You might also like to view...
In an economy without international trade, we can expect total output to equal
a. consumption spending plus investment spending plus government purchases b. consumption spending minus leakages c. the sum of leakages and injections d. consumption spending plus investment spending e. total spending minus leakages and injections
The reason why weaker firms accept price leadership is that they
a. maximize profit that way b. get an equal share of the market c. can collude to eventually challenge the dominant firm d. are protected from price competition e. can lower their prices to increase market share without upsetting the price leader
Schyler is able to take out a loan for $3,000 for one year at an annual interest rate of 10 percent. After calculating her return to be $200, Schyler will realize she will:
A. lose $100 overall if she takes out the loan. B. lose $200 overall if she takes out the loan. C. make $100 overall if she takes out the loan. D. make $200 overall if she takes out the loan.
Explain how the price elasticity of supply is related to the prices of antiques and gold
Please provide the best answer for the statement.