To Encourage Consumption of a Good That Generates Positive Externalities,the

question 163

Multiple Choice

To encourage consumption of a good that generates positive externalities,the BEST option for policymakers would be to:

• A)impose a tax on the amount consumed to achieve the socially optimal level.
• B)mandate consumption of the good at the socially optimal level.
• C)provide a subsidy per unit of the good consumed to achieve the socially optimal level.
• D)do nothing since the market will achieve the socially optimal level without government intervention.

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Definitions:

Quasi War

An undeclared naval conflict between the United States and France from 1798 to 1800, characterized by limited engagement and diplomatic tensions.

Non-Intercourse Act

An act passed by the United States Congress in 1809 that aimed to prohibit trade with Britain and France during the Napoleonic Wars while allowing commerce with other nations.

Anglo French Wars

A series of military conflicts between Britain and France, spanning several centuries, influencing global colonial territories, and shaping modern boundaries.

French Revolution

The period of significant social and political upheaval in France between 1789 and 1799, resulting in the decline of monarchies and churches and the rise of democracy and nationalism.