If a positive externality is caused by producers, a Pigouvian subsidy would have to be given to producers; and if a positive externality is caused by consumers, a Pigouvian subsidy would have to given to consumers.
Answer the following statement true (T) or false (F)
False
Rationale: The statutory incidence of the subsidy is irrelevant -- as long as the subsidy is given to either consumers or producers, the economic incidence will be the same. And as long as it is set efficiently, it will result in the efficient output level.
Economics
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If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by ______ percent per year
A. 7 B. 10 C. 12 D. 14
Economics