Solved

Economist a Believes That the Case for Government Is a Strong

Question 44

Multiple Choice

Economist A believes that the case for government is a strong one,but she doesn't always say,when it comes to negative externalities,that government can turn an inefficient market outcome into an efficient outcome.Which statement is economist A most likely to make?


A) If the tax placed on the activity that generates the negative externality is too large,we are not likely too move from inefficiency to efficiency.
B) If the subsidy placed on the activity that generates the negative externality is too small,we are not likely to move from inefficiency to efficiency.
C) If there is a free rider problem,then government cannot solve the problem of negative externalities.
D) a and b
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents