Author Question: Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level ... (Read 116 times)

jjjetplane · **on:** Jun 29, 2018

Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is

A) to grant a subsidy to enable the industry to internalize the external costs of production.
B) to assign property rights to the firms in the industry.
C) to impose a tax to make the industry bear the external costs it creates.
D) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.

Question 2

Since 1950,

A) the average length of expansions in the United States have become longer as compared to before 1950.
B) the average length of expansions in the United States have become shorter as compared to before 1950.
C) economic expansions in the United States have been so short that expansions barely exist.
D) the average length of expansions in the United States are about the same length as compared to before 1950.