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:

Energy-Use-To-GDP Ratio

A metric that compares a country's total energy consumption to its gross domestic product, indicating the energy efficiency of its economy.

Intraday Fluctuations

Variations in the price of stocks, commodities, or indexes within a single trading day, driven by market news, rumors, or trading activities.

Electricity Demand

The total amount of electrical power required by consumers and businesses at any given time.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as wages, rent, and utilities.