In the Case of a Positive Externality,in Order to Achieve

question 10

Multiple Choice

In the case of a positive externality,in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.

• A) tax; external costs
• B) tax; external benefits
• C) subsidy; external costs
• D) subsidy; external benefits
• E) subsidy; private costs

---

Definitions:

Belongingness Needs

A basic human drive to create and sustain robust, enduring connections with others.

Belongingness

The innate human need to feel connected and accepted by others.

Love Needs

Emotional requirements centered on affection, belonging, acceptance, and love from others.

Self-actualization

Realizing or accomplishing one's inherent talents and possibilities, viewed as an essential need or driving force within everyone.