If a good has an external benefit, efficiency can be achieved by
A) leaving the market unregulated.
B) monopolizing the market.
C) offering a private subsidy on the good equal to the external benefit.
D) imposing a tax on the good equal to the external benefit.
C
Economics
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When federal government spending exceeds tax revenues, the federal government runs a budget surplus
Indicate whether the statement is true or false
Economics
If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal utility of food
A) is not positive. B) does not diminish as food increases. C) is not affected by the amount clothing. D) increases as one obtains more clothing.
Economics