If a Positive Externality Is Caused by Producers, a Pigouvian

question 8

True/False

If a positive externality is caused by producers, a Pigouvian subsidy would have to be given to producers; and if a positive externality is caused by consumers, a Pigouvian subsidy would have to given to consumers.

---

Definitions:

Lactating Mothers

Women who are producing milk in their mammary glands, typically following childbirth, for the purpose of feeding their infants.

Fava Beans

A type of legume that is rich in nutrients and can be found in various cuisines worldwide; also known as broad beans.

Malaria

A mosquito-borne infectious disease affecting humans and animals caused by parasitic protozoans of the genus Plasmodium.

Measles

A highly contagious viral disease that presents with fever and a red rash, usually affecting children and potentially leading to serious complications if untreated.