Which of the following situations exhibits a positive externality? __ Alan purchases a new watch as a gift for his father. __ Sean spends the afternoon cleaning his garage. __ Richard renovates a dilapidated historic home in the center of town. b. when there is a positive externality associated with the market __ too little is produced. __ too much is produced. __ the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by __ taxing the product __ subsidizing the product. __ implementing a price ceiling.
Which of the following situations exhibits a positive externality? __ Alan purchases a new watch as a gift for his father. __ Sean spends the afternoon cleaning his garage. __ Richard renovates a dilapidated historic home in the center of town. b. when there is a positive externality associated with the market __ too little is produced. __ too much is produced. __ the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by __ taxing the product __ subsidizing the product. __ implementing a price ceiling.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 1CQQ
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a. Which of the following situations exhibits a positive externality?
__ Alan purchases a new watch as a gift for his father.
__ Sean spends the afternoon cleaning his garage.
__ Richard renovates a dilapidated historic home in the center of town.
b. when there is a positive externality associated with the market
__ too little is produced.
__ too much is produced.
__ the socially optimal amount is produced.
c. Governments may stimulate the economy to move toward the socially optimal output by
__ taxing the product
__ subsidizing the product.
__ implementing a
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