Where There Are Spillover (Or External)benefits from Having a Particular

question 138

Multiple Choice

Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following, except

• A)subsiding the buyers of the product.
• B)taxing the sellers of the product.
• C)subsidizing the sellers of the product.
• D)providing the product itself.

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Definitions:

Durable Goods

Products or goods that do not quickly wear out and provide utility over time, often lasting for years.

Smartphones

Mobile devices that combine features of a traditional mobile phone with those of other popular consumer gadgets, like personal digital assistants, media players, and GPS navigation units.

Imperishable Goods

Items or products that do not deteriorate in quality or value over time, such as diamonds or precious metals.

Reusable Goods

Products designed to be used multiple times, reducing waste and environmental impact compared to disposable items.