If the production of a good creates large spillover benefits on others, the government might correct for the:
a. overallocation of resources to its production by subsidizing it
b. overallocation of resources to its production by imposing a tax on it.
c. underallocation of resources to its production by subsidizing it.
d. underallocation of resources to its production by imposing a tax on it.
c
Economics
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Refer to Figure 8A.1. Capital deepening occurs as long as
A) total saving exceeds depreciation. B) the level of Y is increasing. C) total saving and depreciation are equal. D) depreciation exceeds total saving.
Economics
A financial statement that sums up a firm's financial position on a particular day is
A) an equity report. B) a balance sheet. C) statement of cash flow. D) an income statement.
Economics