🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
133
views
28 Oct 2020

8. Which of the following is a possible government solution to the problem posed by a good with an external benefit?

a. Tax the consumption of the good.

b. Tax the production of the good.

c. Subsidize the production of the good.

d. All of the above are possible solutions.

 

Booster class
Microeconomics
Skill
Defining Positive externality
Watch
1
answer
0
watching
133
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Raushan Raj
Raushan RajLv8
28 Oct 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

10. Suppose there are no third party effects associated with production or consumption of good A. Which of the following reasons explains why levying a tax on good A creates an inefficient allocation of goods? A tax levied on a good leads to under-consumption by consumers. A tax levied on a good leads to over-consumption by consumers. The tax causes the market price of the good to equal the marginal cost of the good. The tax increases producer surplus.

Goods are rival if

A. It is not possible to prevent an individual from using the good
B. Consumption of a good by one person decreases consumption by another person
C. It is possible to prevent an individual from using the good
D. The quantity of the good is affected by the price a consumer pays for the good

When a government provides a good with an external benefit, to attain efficiency the price paid by consumers is set equal to the ________.

A. market demand price

B. amount paid by taxpayers

C. marginal private benefit at the efficient level of output

D. marginal private cost at the efficient level of output

Which of the following actions is appropriate in a market with an external benefit?

A. taxes

B. vouchers

C. marketable permits

D. price ceiling

When a person receives a flu vaccination, the ________ is the additional benefit the person receives from getting the shot.

A. marginal private benefit

B. marginal external benefit

C. marginal social benefit

D. marginal social cost

Pell grants given to students attending college are most closely similar to ________.

A. public provision of a good

B. private subsidies are given to producers of a good

C. property rights assigned to consumers of a good

D. vouchers are given to a consumer of a good

Technology that prevents Paul in California from using an email account of Sarah's in Maryland means that email is an example of ________.

A. an excludable good

B. a good that is non-excludable

C. a public good

D. the tragedy of the commons

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in