The optimal public policy to correct for negative pecuniary externalities is _____.
A) corrective taxation and compensation
B) subsidization
C) corrective taxation without compensation
D) nothing
Correct Answer:
Verified
Q29: Positive externalities _.
A)are not important economically
B)should be
Q30: A pecuniary externality _.
A)affects the prices facing
Q31: An inframarginal externality is where_.
A)there are spillover
Q32: Anyone can buy marketable pollution rights for
Q33: The level of transactions costs is relevant
Q35: An externality is an economic cost or
Q36: On efficiency grounds,corrective taxes should not be
Q37: When transactions costs are low,private actions to
Q38: Assume that the government can reduce car
Q39: An inframarginal positive externality _.
A)requires subsidization to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents