Author Question: All of the following are ways that the government can correct for positive externalities EXCEPT ... (Read 44 times)

charchew · **on:** Jun 29, 2018

All of the following are ways that the government can correct for positive externalities EXCEPT

A) by subsidizing the consumption of the good.
B) producing the good itself.
C) by regulation.
D) by assessing an effluent fee.

Question 2

Suppose that nuclear power plants are banned. What are examples of the opportunity costs of this decision?

What will be an ideal response?

amy.lauersdorf90 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

Electricity must be produced by some method, so if there are fewer nuclear plants, there will be more plants that use fossil fuels. There will be an increase in coal mining and petroleum production. Coal mining is hazardous and will increase the number of injuries and deaths, and the increased use of oil may generate more oil spills.