One Way to Correct a Positive Externality Is for Government

question 55

True/False

One way to correct a positive externality is for government to subsidize buyers to decrease the quantities that they are willing and able to buy at each price.

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Definitions:

Equivalent Economic Position

A financial strategy or situation where two different financial instruments or situations have the same economic value or return.

Payments

Transactions or exchanges of money between two parties, often for goods or services rendered.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, affecting future interest accrual.

Payment Stream

A series of two or more payments required by a single transaction or contract.