(Figure: Market Efficiency) If the Socially Optimal Quantity of the Good

question 28

Multiple Choice

(Figure: Market Efficiency) If the socially optimal quantity of the good is 200 pounds, there is a _____ externality, so the government should enact a _____ per pound to increase market efficiency.

• A) negative; $6 tax
• B) negative; $1 tax
• C) positive; $6 subsidy
• D) positive; $1 subsidy

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Definitions:

Operating Segments

Parts of an enterprise where separate financial reports are available, regularly examined by the top executive responsible for making operational decisions, to aid in the allocation of resources and the evaluation of performance.

Segment Assets

Segment Assets are those assets that are allocated to a company's operating segments and are directly attributable to the segment.

Seasonal Revenues

Revenues that show significant fluctuations according to the time of year, often influenced by holidays, weather, and social customs.

Interim Report

A financial statement reported by a company for a period less than one year, often quarterly, to provide updates on its performance.