When external benefits exist, which of the following can produce the efficient amount of output? I. vouchers
II) private subsidies
III) taxes
IV) marketable permits
A) I and II only
B) I and III only
C) II and IV only
D) III and IV only

Question

Quizplus · Accepted Answer

Vouchers and private subsidies can help internalize external benefits by encouraging more production or consumption of goods that generate positive externalities, leading to a more efficient output level.

When External Benefits Exist, Which of the Following Can Produce