What Tool Can a Government Use to Correct a Market

question 77

Multiple Choice

What tool can a government use to correct a market with a negative externality, thereby setting the efficient level of output and maximizing surplus?

• A)Tariff
• B)Subsidy
• C)Tradable allowance
• D)Quota

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Definitions:

Akan Kente Cloth

A type of silk and cotton fabric made of interwoven cloth strips and is native to the Akan ethnic group of Ghana, known for its colorful patterns and symbolic meanings.

Production

The process of creating, manufacturing, or generating goods, services, or artistic works.

Royal Artworks

Art pieces created for or associated with royalty, often reflecting the power, wealth, or ideals of a monarchy.

Thrones

Ceremonial chairs or seats of power used by monarchs, deities, or figures of high authority, symbolizing sovereignty and prestige.