If Production of a Good Produces an External Benefit, in Order

question 96

Multiple Choice

If production of a good produces an external benefit, in order for the marginal social cost to equal the marginal social benefit,

• A) the good could be subsidised.
• B) the good should be taxed.
• C) permits should be required to purchase the good.
• D) the government needs to take no action.

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Definitions:

Traditional

Traditional refers to beliefs, customs, and practices that are handed down from one generation to another, representing a continuity of cultural heritage.

Religion

A structured set of beliefs, practices, and systems that relates humanity to spiritual, divine, or moral elements, often involving worship and a code of ethics.

Authoritarian Parenting

A parenting style characterized by high demands and low responsiveness, focusing on obedience and authority.

Liberal Child-Rearing

A parenting approach characterized by flexibility, open communication, and the support of a child's independence within reasonable limits.