A Pigouvian Subsidy Is

question 180

Multiple Choice

A Pigouvian subsidy is:

• A)designed to discourage activities generating externalities.
• B)designed to encourage activities generating external benefits.
• C)appropriate when the marginal social cost curve is above the marginal cost of production curve.
• D)appropriate when the marginal social cost curve and the marginal social benefit curve intersect at an inefficient level.

---

Definitions:

Housing Segregation

The division of housing based on racial, economic, or other discriminatory factors, often resulting in unequal living conditions and communities.

Enforcement Mechanisms

Tools or methods used by regulatory agencies, organizations, or governments to ensure compliance with laws, regulations, or agreements.

School Desegregation

The process of eliminating racial segregation in schools, often through legal and social efforts, to ensure equal educational opportunities for all races.

Federal Court Orders

Judicial mandates issued by a federal court to enforce a legal right or redress a legal wrong.