A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits.
B) a subsidy to consumers of the good that provides external benefits.
C) an effluent fee charged to producers of the good that provides external benefits.
D) regulations aimed at reduced production by sellers of the good that provides external benefits.
Answer: B
You might also like to view...
Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, the equilibrium quantity is:
A) 10 units. B) 20 units. C) 40 units. D) 60 units.
Specialization in production is beneficial because
What will be an ideal response?
Jerry's Quarry sells building stone in a perfectly competitive market. At its current level of building stone production, Jerry's Quarry has marginal costs equal to $45, and AVC is rising. If the market price of building stone is $50, Jerry's Quarry should:
A. decrease its level of building stone production. B. continue producing its current level of production. C. increase its production of building stone. D. shut down and produce no building stone.
A car dealer sells you a car today in exchange for money in the future. This illustrates which function of money?
A) standard of deferred payment B) unit of account C) medium of exchange D) store of value