Use the Following to Answer Questions

question 30

Multiple Choice

Use the following to answer questions :
Figure: City with Two Polluters
-Betsy loves to garden,and her rose garden is enjoyed by everyone in her neighbourhood.Because her consumption of rosebushes provides a positive externality to the community,the government should _____ because the market quantity of rosebushes is _____ than the socially optimal quantity.

• A) provide a subsidy;greater
• B) impose a tax;lower
• C) provide a subsidy;lower
• D) impose a tax;greater

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Definitions:

Breach of Condition

The failure to fulfill a condition agreed upon in a contract, potentially rendering the contract void.

Easter Break

A holiday period marking the Christian celebration of Easter, often observed in schools and various sectors as a break from routine activities.

Significant Term

A significant term in a contract is a provision that is essential to the agreement, often impacting the performance, duties, and rights of the parties involved.

Minor Failure

A small or insignificant defect or flaw, especially in a product, system, or mechanism, that does not generally inhibit its intended function.