To internalize a positive externality an appropriate public policy re – McqOptions

MCQOPTIONS

1.	To internalize a positive externality an appropriate public policy response would be to ?
A.	ban the good creating the externality
B.	tax the good
C.	subsidize the good
D.	have the government produce the good until the value of an additional unit is zero
Answer» D. have the government produce the good until the value of an additional unit is zero

Discussion

No Comment Found

Related MCQs

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?
A negative externality generates ?
Tradable pollution permits ?
Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?
The gas-guzzler tax that is placed on new vehicles that are very fuel inefficient is an example of ?
A pigovian tax on pollution ?
When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of ?
Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true ?
Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?
To internalize a negative externality an appropriate public policy response would be to ?