If Production of a Good Produces an External Benefit, in Order

question 107

Multiple Choice

If production of a good produces an external benefit, in order for the marginal social cost to equal the marginal social benefit

• A) the good should be taxed.
• B) permits should be required to purchase the good.
• C) the good could be subsidized.
• D) the government needs to take no action.

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Definitions:

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining particular traits.

Environmental Learning

The acquisition of knowledge, skills, or attitudes as a result of interaction with one's surroundings or environment.

Prenatal Development

The process of growth and development within the womb from conception until birth.

Factors Affecting

Variables or conditions that can influence the outcome or behavior in various contexts, such as environmental, social, or psychological elements.