The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A) how the subsidy is distributed among those affected by the externality.
B) if those who are affected receive their true value of the externality.
C) where the government gets the money to pay for the subsidy.
D) None of these statements is true.

Question

Quizplus · Accepted Answer

The Answer of The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A) how the subsidy is distributed among those affected by the externality.
B) if those who are affected receive their true value of the externality.
C) where the government gets the money to pay for the subsidy.
D) None of these statements is true.

The Distribution of Surplus Received from a Subsidy Offered in a Market