Why Is the Market for Honey Efficient Despite the Potential

question 55

Multiple Choice

Why is the market for honey efficient despite the potential problem of pollination externalities?

• A) The government offers a Pigouvian subsidy for the production of honey.
• B) The government imposes a Pigouvian tax on the production of honey.
• C) The quantity of honey that can be produced each year is capped.
• D) Beekeepers are paid for the pollination services their bees provide, thus internalizing the externality.

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Definitions:

Parasitic Plants

Plants that derive some or all of their nutritional requirements from another living plant.

Nutritional Source

A food or substance that provides essential nutrients needed for growth and maintenance of life.

Blood-Borne Pathogen

Microorganisms such as viruses or bacteria that are carried in blood and can cause disease in people.

Hepatitis A Virus

A highly contagious liver infection caused by the hepatitis A virus, typically transmitted through the ingestion of contaminated food or water.