Government in a market system can increase economic efficiency by collecting taxes in order to subsidize the production of

Question

Quizplus · Accepted Answer

The government can subsidize the production of goods with positive externalities, such as education or vaccines, which have benefits beyond the individual consumer. By providing these subsidies, the government can ensure that these goods are produced and consumed at an optimal level, leading to increased economic efficiency.

Government in a Market System Can Increase Economic Efficiency by Collecting