If the production of a product or service involves external benefits, then the government can improve efficiency in the market by:
A. Providing a subsidy to correct for an overallocation of resources
B. Providing a subsidy to correct for an underallocation of resources
C. Imposing a corrective tax to correct for an overallocation of resources
D. Imposing a corrective tax to correct for an underallocation of resources
B. Providing a subsidy to correct for an underallocation of resources
Economics
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Marginal utility can be
A) positive. B) negative. C) zero. D) positive, negative, or zero.
Economics
The primary tool utilized by the Federal Reserve today in conducting monetary policy is
a. the discount rate. b. reserve requirements. c. open market operations. d. selective credit controls.
Economics