2012 Multiple Choice (Market Failure) Externalities
Market Failure (externalities) cheat sheet here.
Answer - (B) Subsidies the producer
Understand that the Government really can only do two things: tax or subsidies.
If it a positive externality, we want more of it....
So society subsidises the production of the good
Answer - 59 (D)
Answer - 60 (B)
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