A Positive Externality Exists and Government Wants to Impose a Subsidy

question 49

Multiple Choice

A positive externality exists and government wants to impose a subsidy in order to bring about an efficient outcome.To accomplish its objective,government must set the subsidy equal to marginal

• A) private cost.
• B) social benefit.
• C) external cost.
• D) social cost.
• E) external benefit.

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Definitions:

Sociotechnical

Relating to the interaction between social and technical elements within an organization, focusing on the relationships between people and technology in work environments.

Cohesive

Characterized by unity and sticking together; forming a whole or working closely as a unified entity.

Semiformal

A term referring to practices or events that are not strictly formal but still adhere to certain established norms or rules.

Formal Group

An official group formed within an organization, designed with a specific purpose and structured roles.