Governments Can Most Effectively Encourage a Firm to Produce the Efficient

question 206

Multiple Choice

Governments can most effectively encourage a firm to produce the efficient level of output of a good whose production causes a beneficial externality by

• A)increasing the demand at every price for the good.
• B)subsidizing the production of the good.
• C)taxing the production of the good.
• D)imposing a price ceiling on the good.

---

Definitions:

Quantitative Research

Research that relies on numerical data and statistical methods to understand patterns, relationships, or trends.

Data Collection

The process of gathering and measuring information on variables of interest, in an established systematic fashion to answer stated research questions, test hypotheses, and evaluate outcomes.

Researchability

The potential or suitability of a topic to be investigated or researched effectively.

Clinical Area

A specialized section within a healthcare facility where patient care is delivered, often designated for specific medical specialties.