Which of the Following Is a Common Method Used by Government

question 243

Multiple Choice

Which of the following is a common method used by government to cope with the situation in which production of a good creates an external cost?

• A) removing property rights
• B) subsidizing production
• C) marketable permits
• D) lottery
• E) vouchers

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Definitions:

Goods

Tangible products that are produced, bought, or sold to satisfy the needs or desires of consumers.

Concept Testing

The process of evaluating consumer response to an idea before introducing a product or service to the market, to ascertain its potential success.

Visual Models

Diagrams or representations used to illustrate complex information or processes, facilitating easier understanding and analysis.

Potential Product

The concept of what a product could become or the highest value that a product can deliver to a consumer, incorporating all possible augmentations and transformations the product might undergo.