2012 Multiple Choice (Market Failure) Externalities

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)

Externalities (1995,2000,2005,2008) Multiple Choice

Externalities (1995,2000,2005,2008) Multiple Choice

1995

1995

#14 - E

#30 - B

#42 - C

#45 - A

#60 - B

2000

2000

#15 - A

#30 - C

#57 - E

#59 - D

#60 - A

2005

2005

#29 - D

#45 - A

#59 - B

#60 - B

2008

2008

#15 - E

#29 - B

#30 - B

#45 - B