Q45 A negative externality such as pollution can be corrected bya subsidy to producers.O a tax on producers.O a subsidy to consumers.O a stimulus to production.

MSC- marginal social cost MEC- marginal external cost MPC- marginal private cost MPB - marginal…

Answered: A negative externality such as…

A negative externality such as pollution can be corrected by a subsidy to producers. a tax on producers. a subsidy to consumers. O a stimulus to production.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 5CQ

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Question

Q45

A negative externality such as pollution can be corrected by
a subsidy to producers.
O a tax on producers.
O a subsidy to consumers.
O a stimulus to production.

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