If there are external benefits for good X then which of the following would be true?
a. The socially efficient amount of good X can be achieved if society subsidizes consumers of good X.
b. The socially efficient amount of good X does not exist.
c. The socially efficient amount of good X can be achieved if society taxes consumers of good X.
d. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity.
a
You might also like to view...
As the price level falls, the quantity of real wealth ________ and the aggregate quantity of real GDP demanded ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology. This explanation would require that
A) workers withdraw from the labor force to learn about the new technology. B) a large number of new entrants be attracted to the labor force. C) managers be reluctant to adopt changes. D) workers time at their jobs be diverted from production to learning the technology.