In Order to Achieve the Socially Optimal Level of Output

question 125

Multiple Choice

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

• A)banned.
• B)subsidized.
• C)taxed.
• D)provided by the government.

---

Definitions:

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.

Fungible Goods

Items that are interchangeable with others of the same type because they are identical in essence and value, such as grains or precious metals.

Average Quality

The median standard of quality among similar products or services, considered acceptable or satisfactory.