Governments Can Increase the Consumption of a Product That Creates

question 129

Multiple Choice

Governments can increase the consumption of a product that creates positive externalities by

• A) subsidizing the production of the product so that the supply is increased and market price is reduced.
• B) taxing the production and consumption of the product.
• C) convincing everyone to consume the good.
• D) assigning property rights to the producers of the product.

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