Betsy loves to garden, and her rose garden is enjoyed by everyone in her neighborhood.Because her consumption of rosebushes provides a positive externality to the community, the government should:
A) provide gardeners like Betsy a subsidy because the market quantity of rosebushes is greater than the socially optimal quantity.
B) impose a tax on gardeners like Betsy because the market quantity of rosebushes is lower than the socially optimal quantity.
C) provide gardeners like Betsy a subsidy because the market quantity of rosebushes is lower than the socially optimal quantity.
D) impose a tax on gardeners like Betsy because the market quantity of rosebushes is greater than the socially optimal quantity.
Correct Answer:
Verified
Q126: Betsy loves to garden, and her rose
Q127: Which of the following is an example
Q128: Suppose the production of roses generates a
Q129: Figure: City with Two Polluters 
Q130: Suppose the production of roses generates a
Q132: When a vaccination program generates a positive
Q133: Which of the following is an example
Q134: Figure: City with Two Polluters 
Q135: Figure: City with Two Polluters 
Q139: A Pigouvian subsidy is:
A)designed to discourage activities
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents