If the Government Subsidizes an Activity It Believes Is Generates

question 16

True/False

If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question.

---

Definitions:

Mixed/Whole Numbers

Numbers consisting of both a whole number and a fractional part, commonly used in everyday measurements.

Apartment Building

A residential building containing multiple apartments for rent.

Business Revenue

The total income generated by a company from its normal business operations before any expenses are subtracted.

Percent Reduced

A measure of how much a number or value is decreased expressed as a percentage.