Which of the following represents a way that a government can help the private market to internalize an externality?
a. taxing goods that have negative externalities
b. subsidizing goods that have positive externalities
c. The government cannot improve upon the outcomes of private markets.
d. Both a and b are correct.
d
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According to the Lucas supply function, if the expected price level is larger than the actual price level
A. real output increases. B. real output decreases. C. nominal output decreases. D. nominal output increases.
Which of the following is part of the economic way of thinking? a. When an option becomes less beneficial, individuals will become more likely to choose it. b. Costs are incurred whenever scarce resources are used to produce goods or services
c. The value of a good is determined by its cost of production. d. Both a. and b. are part of the economic way of thinking.