Government can correct for negative externalities by
A) decreasing taxes.
B) increasing taxes or regulation.
C) allowing the market system to correct the problem.
D) decreasing the costs to those responsible for the externality.
B
Economics
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If the government grants a firm a public franchise to supply coal, a monopoly is created by
A) a natural barrier to entry. B) a legal barrier to entry. C) price discrimination. D) All of the above answers are correct.
Economics
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The Nash equilibrium
A) is for just one of the firms to make the investment. B) is for both firms to make the investment. C) is for neither firm to make the investment. D) does not exist.
Economics