An appropriate government policy toward negative externalities is to
a. subsidize the activity that creates the negative externality.
b. impose a tax or fine on the activity that creates the negative externality.
c. pay money to the party that creates the negative externality.
d. impose a tax on recipients of the negative externality.
b
Economics
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When a nation exports a good, its consumer surplus ________, and its producer surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; increases
Economics
Like a perfect competitor, a monopolistic competitor:
a. produces where price equals marginal cost. b. produces a homogeneous product. c. earns zero economic profit in the long run. d. earns zero economic profit in the short run.
Economics