Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?

The cross-price elasticity of demand between rifles and bullets is likely to be

a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not substitutes

The creation of private property rights corrects negative externality problems in many cases because they

a. cannot create negative externalities b. create a strong incentive for the private owners to maintain the property c. can force the government to compensate the owners for the externality costs d. encourage people to become free riders e. always lead to the social optimal price and output levels