When does a subsidy to a business or a consumer result in a more efficient allocation of a resource?
A) When the good being produced or consumed is not scarce
B) When the good being produced or consumed generates a negative externality
C) When the good being produced or consumed generates a positive externality
D) When the equilibrium price of the good is one that consumers don't like
Correct Answer:
Verified
Q5: Market failures arise when
A) society is not
Q6: When the city of London imposed a
Q7: Positive externalities create problems within a price
Q8: Which of the following is an incidence
Q9: A firm that produces chemical solvents creates
Q11: Suppose that an instance of market failure
Q12: If a corporation were forced to absorb
Q13: Which of the following is a method
Q14: An example of a negative externality created
Q15: Which one of the following is FALSE?
A)
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