In a market where a positive externality is present, the effect of a government subsidy would be to ensure:
A. a more fair distribution of surplus.
B. an efficient outcome.
C. that those who enjoy the benefit receive the surplus.
D. All of these statements are true.
B. an efficient outcome.
Economics
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According to this Application, for approximately 12 million homeowners in 2012, the amount owed on mortgages was higher than the actual value of the homes. Homeowners who find themselves in this situation are said to be
A) "financially grounded." B) "subprime borrowers." C) "underwater." D) "shadow mortgage holders."
Economics
A rightward shift of the supply curve will lead to a(n)
A) decrease in equilibrium price. B) excess supply at the old equilibrium price. C) increase in quantity demanded. D) All of the above.
Economics