A Market with a Negative Externality Will Reach an Efficient

question 83

Multiple Choice

A market with a negative externality will reach an efficient outcome when resources are allocated to those with the greatest willingness to pay. To help a market reach efficiency, the government can:

• A)tax consumers.
• B)offer consumers a subsidy.
• C)place a quota at the efficient level.
• D)All of these are options the government can take to help a market reach efficiency.

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Definitions:

Heroic Figure

An individual admired for their courage, outstanding achievements, or noble qualities, often featured in literature and history.

Sacrifice

The act of giving up something valued for the sake of something else regarded as more important or worthy.

Syllogistic Steps

The sequence of logical deductions in a syllogism where a conclusion is inferred from two or more premises.

Virtuous

Exhibiting virtues such as moral excellence, righteousness, and adherence to ethical principles in behavior and character.