In the Case of a Positive Externality,in Order to Achieve

question 10

Multiple Choice

In the case of a positive externality,in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.

• A) tax; external costs
• B) tax; external benefits
• C) subsidy; external costs
• D) subsidy; external benefits
• E) subsidy; private costs

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Definitions:

Sensory Deficits

Impairments in one or more of the senses, including vision, hearing, touch, taste, and smell, affecting a person's ability to process sensory information.

Macular Degeneration

A medical condition that results in blurred or no vision in the center of the visual field due to damage to the macula, part of the retina in the eye.

Diabetic Retinopathy

A diabetes complication that affects the eyes, caused by damage to the blood vessels of the light-sensitive tissue at the back of the eye (retina).

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision.