The government might provide a subsidy when
A) a negative externality exists.
B) an effluent fee has been unsuccessful.
C) it wants to increase the amount of a good consumed.
D) it wants to transform a negative externality into a positive externality.
C
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At macroeconomic equilibrium
A) total taxes equal total transfers. B) total consumption equals total production. C) total investment equals total inventories. D) total spending equals total production.
Government-run employment agencies and public training programs are operated by the government to try to facilitate job search and reduce unemployment
a. Almost all economists agree that such programs are of no use. b. Almost all economists agree that such programs work very well. c. Some economists claim that the government can do these things no better than firms and individuals could do them for themselves. d. Some economists claim that these programs increase frictional unemployment.