An External Cost Would Cause _______ Production of the Good

question 187

Multiple Choice

An external cost would cause _______ production of the good and may require a _______ to internalize the externality into the market.

• A) too much; tax
• B) too much; subsidy
• C) too little; tax
• D) too little; subsidy

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Definitions:

1933 Act

Officially known as the Securities Act of 1933, this U.S. law regulates the offer and sale of securities to protect investors from fraud.

Securities Act Of 1933

A U.S. law that regulates the sale of securities to protect investors from fraudulent practices.

Public Purchaser

An entity, often a government or public institution, that buys goods or services for public use or benefit, typically through a bidding or procurement process.

Issuer

The entity that issues or distributes a financial instrument, such as a company issuing stocks or bonds.