In Market X, the External Benefit of Consumption Is $5

question 184

Multiple Choice

In Market X, the external benefit of consumption is $5. In Market Y, the external cost of consumption is $10. Efficiency in both markets could be achieved by:

• A) a tax of $5 in Market X and a subsidy of $10 in Market Y.
• B) subsidizing both markets.
• C) taxing Market Y and subsidizing Market X.
• D) taxing both markets.

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Definitions:

Collectivism

Collectivism emphasizes the importance of groups and the collective over the autonomy of individual members.

Foundation Competencies

Fundamental skills, knowledge, and abilities that are necessary across a range of jobs and industries.

Communication Competency

The skill to convey, receive, and interpret messages effectively across a variety of contexts.

Implementation

The act of implementing or carrying out a decision or plan.