To correct for positive externalities the government
A) should allow the price system to do the correction.
B) can impose a tax.
C) can give a subsidy.
D) should create a public good.
C
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When output is below its full-employment level, the short-run aggregate supply will shift down and to the right because
A) the expected price level will be below the actual price level. B) workers' wages will decline. C) prices of nonlabor inputs will rise. D) workers' wages will rise.
On a graph of production costs, the vertical distance between the fixed cost curve and the total cost curve at a specific quantity represents
a. variable cost b. average variable cost c. average total cost d. average fixed cost e. marginal cost
As this was happening the big financial institutions stopped buying subprime mortages
What will be an ideal response?
If price and total revenue vary in opposite directions, demand is:
A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.