To correct for positive externalities the government
A) should allow the price system to do the correction.
B) can impose a tax.
C) can give a subsidy.
D) should create a public good.

Question

Quizplus · Accepted Answer

To correct for positive externalities, the government can give a subsidy to encourage more of the beneficial activity that leads to positive externalities. This helps align private costs with social benefits.

To Correct for Positive Externalities the Government