All of the following are ways that the government can correct for positive externalities EXCEPT
A) by subsidizing the consumption of the good.
B) producing the good itself.
C) by regulation.
D) by assessing an effluent fee.
D
Economics
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Refer to Figure 21-1. Which of the following is consistent with the graph depicted above?
A) Households become spendthrifts and begin to save less. B) An expected recession decreases the profitability of new investment. C) The government runs a budget surplus. D) Technological change increases the profitability of new investment. Figure 21-2
Economics
The flu vaccination example in Section 1.1 of the textbook is an example of how policy makers may cope with
A) scarcity of medical treatment. B) scarcity of patients. C) scarcity of policy makers. D) answering the question of how to produce.
Economics