When positive externalities exist in a market, if a Pigouvian subsidy is imposed:
A. those who interact in the market will lose surplus.
B. those who interact in the market will gain surplus.
C. those who do not interact in the market, but are affected by the externality, will gain surplus.
D. None of these statements is necessarily true.
B. those who interact in the market will gain surplus.
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Critics of globalization argue that international trade agreements represent roadblocks to democratic decision making, because power is decentralized from large international institutions to the local communities in the process
a. True b. False Indicate whether the statement is true or false
The growth rates of actual and potential GDP
a. are similar in both the short and long run. b. are similar in the short run but not the long run. c. are similar in the long run but not the short run. d. are different in both the short and long run.
The most prevalent type of damage associated with hazardous waste sites is
a. water and soil contamination b. loss of livestock c. fish kills d. air pollution
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
What will be an ideal response?