One Way That the Government Encourages the Production of a Good

question 77

Multiple Choice

One way that the government encourages the production of a good with positive externalities is to offer

• A) an effluent fee.
• B) a market to pollute.
• C) a subsidy.
• D) a pollution tax.

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Definitions:

One-Tailed Test

A hypothesis test in which the region of rejection is on only one side of the sampling distribution, used when the alternative hypothesis specifies the direction of the effect.

Two-Tailed Test

A statistical test used to determine if there is a significant difference in two directions, either greater than or less than a specified range or value.

Sampling Error

The deviation of a sample statistic from its population parameter due to the fact that only a subset of the population is observed.

Sample And Population Values

Quantitative or qualitative characteristics measured in a subset (sample) and those from the entire group of interest (population), respectively.