In Market X, the External Benefit of Consumption Is $5

question 184

Multiple Choice

In Market X, the external benefit of consumption is $5. In Market Y, the external cost of consumption is $10. Efficiency in both markets could be achieved by:

• A) a tax of $5 in Market X and a subsidy of $10 in Market Y.
• B) subsidizing both markets.
• C) taxing Market Y and subsidizing Market X.
• D) taxing both markets.

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Definitions:

Transsexuality

A condition where an individual's gender identity does not align with their biological sex, leading them to potentially seek gender-affirming treatments.

Transvestism

Engaging in the behavior and attire commonly connected with the opposite gender.

Homosexuality

The sexual and emotional attraction to individuals of the same sex.

Genital Anomaly

A congenital condition in which the external sex organs are developed differently than typical male or female genitalia, often requiring medical evaluation and possibly intervention.