To Increase Efficiency

question 13

Multiple Choice

To increase efficiency,

• A)taxes are used to overcome both external benefits and external costs.
• B)subsidies are used to overcome both external benefits and external costs.
• C)subsidies are used to overcome external benefits, and taxes to overcome external costs.
• D)taxes are used to overcome external benefits, and subsidies to overcome external costs.
• E)emissions charges are used to overcome external benefits, and vouchers to overcome external costs.

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Definitions:

Industry Competition

The rivalry among companies within the same industry to gain more market share, customers, or profits.

Economy State

The current conditions and overall health of a country's economy, influenced by factors such as GDP growth, unemployment rates, and inflation.

Required Return

The minimum return an investor expects to achieve on an investment, considering its risk.

Expected Market Return

The anticipated average rate of return on an investment portfolio or a market index over a certain period, based on historical data and market conditions.