Assuming Positive Externalities in Consumption,the Type of Government Action That

question 13

Multiple Choice

Assuming positive externalities in consumption,the type of government action that could bring about an efficient level of production would be

• A)A tax levied on each unit produced equal to marginal external costs
• B)A tax levied on each unit produced greater than marginal external costs
• C)A subsidy on each unit consumed equal to marginal external benefits
• D)A subsidy on each unit consumed greater than marginal external benefits
• E)None of the above

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Assets that are used in the operations of a business to generate revenue, including machinery, buildings, and equipment.

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