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.

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Definitions:

Moral Order

An arrangement of society that is considered to be in line with moral laws or principles.

Age of Globalization

A period marked by increased interconnectedness and interdependence of peoples and countries worldwide, largely due to advancements in communication, transportation, and trade.

Worldwide Media

The various means of mass communication (such as television, radio, newspapers, and the internet) considered collectively at a global scale.

Mediated Crime Event

A criminal event or activity that is influenced, facilitated, or carried out through the use of media or digital platforms.