A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits.
B) a subsidy to consumers of the good that provides external benefits.
C) an effluent fee charged to producers of the good that provides external benefits.
D) regulations aimed at reduced production by sellers of the good that provides external benefits.
B
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If a $1 sales tax is imposed on the sale of a CD, and neither the demand nor the supply is perfectly elastic or perfectly inelastic, then the price of a CD paid by consumers will
A) increase by $1 and fewer CDs will be bought. B) increase by less than $1 and fewer CDs will be bought. C) not change and the same number of CDs will be bought. D) increase by $1 and the same number of CDs will be bought. E) increase by more than $1 and fewer CDs will be bought.
For which of the following nations does international trade account for the largest percentage of GDP?
a. Japan b. The Netherlands c. Germany d. Great Britain e. the United States