If external benefits occur when a good is consumed,then the government should:
A) Tax the producers of the good.
B) Make transfer payments to those who incur the externalities.
C) Subsidize the consumption or production of the good.
D) Enforce antitrust laws against producers of the good.
Correct Answer:
Verified
Q42: If the economy relies entirely on markets
Q43: The market will:
A) Always provide the optimal
Q44: The most important motivation for producers is
Q45: Noise generated by an airport best illustrates:
A)
Q46: If a good generates an external cost,the
Q48: Whenever external benefits exist:
A) Market demand will
Q49: Other things being equal,if a perfectly competitive
Q50: Social demand exceeds market demand whenever:
A) Private
Q51: Whenever external costs exist:
A) Social demand is
Q52: External costs arise when:
A) Private costs are
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