In Order to Achieve the Socially Optimal Level of Output

question 16

Multiple Choice

In order to achieve the socially optimal level of output, goods that entail positive externalities should be:

• A)required.
• B)subsidized.
• C)taxed.
• D)deregulated.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the contribution of trade to the national economy.

Foreign Demand

The desire and willingness of buyers from other countries to purchase goods and services, influenced by factors such as price, quality, and exchange rates.

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Dollar

A unit of currency used in various countries, most notably the United States, identified as a standard monetary unit for transactions.