For a Government Subsidy on a Good with an External

question 292

Multiple Choice

For a government subsidy on a good with an external benefit to result in the efficient amount of output being produced,what must be done?

• A) The size of marginal external benefit must be accurately determined.
• B) The government must produce the product.
• C) Private production and private consumption must both be directly subsidized.
• D) The quantity demanded must be decreased to the efficient amount.
• E) Private production without the subsidy must be prohibited.

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Definitions:

Activist

An individual who takes deliberate action to bring about social, political, economic, or environmental change.

Tokenism

The practice of making only a perfunctory or symbolic effort to do a particular thing, especially by recruiting a small number of people from underrepresented groups in order to give the appearance of equality within a workforce.

All-male Group

A group or assembly consisting exclusively of male members, without participation from women or non-binary individuals.

All-White Group

A collective or assembly consisting exclusively of white individuals, which may be highlighted in discussions of diversity and inclusivity.