A market with a negative externality will reach an efficient outcome when resources are allocated to those with the greatest willingness to pay. To help a market reach efficiency, the government can:
A) tax consumers.
B) offer consumers a subsidy.
C) place a quota at the efficient level.
D) All of these are options the government can take to help a market reach efficiency.
Correct Answer:
Verified
Q97: An example of a Pigovian tax would
Q98: A carbon tax is an example of:
A)a
Q99: When positive externalities exist in a market,
Q100: A tax on cigarettes:
A)increases total surplus.
B)increases efficiency
Q101: When a positive externality is present in
Q103: When a positive externality is present in
Q104: Pigovian taxes are not always effective because:
A)they
Q105: If a Pigovian tax is not large
Q106: In order to bring a market to
Q107: If the revenues from a Pigovian tax
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