Which of the following represents a market-oriented approach the government can take to reach the socially optimal quantity of a product with positive externalities? A. The government can tax the product. B. The government can subsidize the product. C. The government can require people to use the product. D. The government can prohibit use of the product.
Which of the following represents a market-oriented approach the government can take to reach the socially optimal quantity of a product with positive externalities? A. The government can tax the product. B. The government can subsidize the product. C. The government can require people to use the product. D. The government can prohibit use of the product.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section11.2: Public Goods
Problem 2QQ
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Which of the following represents a market-oriented approach the government can take to reach the socially optimal quantity of a product with positive externalities?
A. The government can tax the product.
B. The government can subsidize the product.
C. The government can require people to use the product.
D. The government can prohibit use of the product.
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