One Way That Government Can Encourage the Production of Goods

question 197

True/False

One way that government can encourage the production of goods or services that have external benefits is to subsidize the good or service.

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Definitions:

Populations

Groups of individuals of the same species living and interacting within a specific area.

Total Demand

The entire quantity of a good or service that all consumers in a market are willing and able to purchase at a given price over a specific time period.

Commodity Resources

Natural resources or goods that are considered valuable in their natural form, such as oil, gold, and agricultural products.

Consumption Per Person

Consumption per person measures the amount of goods and services consumed, on average, by each person within a population.