Question

65. A law stating that power plants are allowed zero emissions of sulfur dioxide is an example of ________.

a. the Coase Theorem

b. a Pigovian corrective tax

c. a Pigovian corrective subsidy

d. command-and-control regulation

66. A corrective subsidy induces the ________ toward the socially optimal level.

a. producers creating a negative externality to increase the quantity produced

b. consumers benefiting from a positive externality to increase the quantity consumed

c. producers generating a positive externality to reduce the quantity produced

d. consumers affected by a negative externality to increase the quantity consumed

67. A vaccination against a disease helps prevent the spread of the disease. Which of the following can help increase the number of people vaccinated to the socially optimal level?

a. A corrective subsidy

b. A health tax

c. An income tax

d. An insurance policy

68. Private goods are ________.

a. excludable but non-rival in consumption

b. excludable and rival in consumption

c. non-excludable but rival in consumption

d. non-excludable and non-rival in consumption

Answer 1

a) "D"

this is an example of the command and control policy by the government.

b) "B"

consumers benefiting from a positive externality to increase the quantity consumed

c) "A"

a corrective subsidy will increase the number of people vaccinated in the economy.

d) "B"

They are excludable and rival in consumption.