Which of the following responses to a positive externality enhances society's welfare?

If activists successfully lobbied government to force firms to produce more output than they normally would in a perfectly competitive market,

A) consumer surplus would decline. B) producer surplus would increase. C) taxation would solve the problem. D) total surplus in the market would decline.

An advocate of supply-side fiscal policy would advocate which of the following?

a. Subsidies to produce technological advances. b. Reduction in regulation. c. Reduction in resource prices. d. Reduction in taxes. e. All of these.