A Subsidy Equal to the Marginal Private Benefit of a Good

question 93

True/False

A subsidy equal to the marginal private benefit of a good can be used to make a market with a positive externality efficient.

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Definitions:

Cyclic Pathway

A series of biochemical reactions that return to the starting point, recycling intermediates and driving cellular processes.

Noncyclic Reactions

A phase of photosynthesis that involves a linear electron flow resulting in the production of oxygen, ATP, and NADPH as opposed to cyclic reactions where only ATP is produced.

Carbon Fixation

The process by which inorganic carbon (carbon dioxide) is converted into organic compounds by living organisms, primarily during photosynthesis.

Carbon Fixation

The process by which inorganic carbon (typically carbon dioxide) is converted to organic compounds by living organisms, crucial in the synthesis of glucose during photosynthesis.