To Correct for Positive Externalities the Government

question 78

Multiple Choice

To correct for positive externalities the government

• A) should allow the price system to do the correction.
• B) can impose a tax.
• C) can give a subsidy.
• D) should create a public good.

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Definitions:

Managerial Rules of Thumb

Informal guidelines or principles that managers use, based on experience and practice, to make decisions and solve problems.

Mathematical Models

Representations of real-world systems or phenomena using mathematical concepts and language to analyze and predict behaviors.

Bureaucracy

A system of governance or organization characterized by standardized procedures, hierarchical structure, and formal rules.

Max Weber

A German sociologist, philosopher, and political economist whose ideas influenced social theory and social research, known for his works on bureaucracy and organizational structures.