Use the Figure Below to Answer the Following Questions

question 59

Multiple Choice

Use the figure below to answer the following questions.

Figure 16.3.2
-In Figure 16.3.2. The figure shows the market for good B. Which of the following government policies creates an efficient outcome?

• A)Tax the production of B by $3 per unit.
• B)Tax the production of B by $4 per unit.
• C)Provide vouchers for consumption of B of $1 per unit.
• D)Provide vouchers for consumption of B of $3 per unit.
• E)Provide vouchers for consumption of B of $4 per unit.

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Definitions:

Intangible Benefits

Benefits that cannot be physically touched or quantified easily, such as brand reputation or customer loyalty.

Required Rate Of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset or project.

Tangible Costs

Costs that have a clear and direct physical presence or can be easily measured in monetary terms.

Investment Proposal

A formal suggestion for investing capital, typically encompassing projected costs, benefits, risks, and returns.