The Devices the Government Can Use to Achieve a More

question 45

Multiple Choice

The devices the government can use to achieve a more efficient allocation of resources in the presence of external benefits include all of the following except

• A)subsidies.
• B)patents.
• C)copyrights.
• D)taxes.
• E)vouchers.

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Definitions:

Negatively Affects

Causes harm or reduces the quality, value, or performance of something.

Air Traffic

The controlled movement of aircraft within the Earth’s atmosphere, especially the scheduling and management of airplane takeoffs and landings.

Carbon Tax

A fee imposed on the burning of carbon-based fuels (coal, oil, gas) aimed at reducing greenhouse gas emissions.

Supply Curve

A graph that shows the quantity of a good producers are willing to supply at different prices.